Correlation Between 5Th Planet and Sea1 Offshore
Can any of the company-specific risk be diversified away by investing in both 5Th Planet and Sea1 Offshore at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 5Th Planet and Sea1 Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 5Th Planet Games and Sea1 Offshore, you can compare the effects of market volatilities on 5Th Planet and Sea1 Offshore and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in 5Th Planet with a short position of Sea1 Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5Th Planet and Sea1 Offshore.
Diversification Opportunities for 5Th Planet and Sea1 Offshore
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5Th and Sea1 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding 5Th Planet Games and Sea1 Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea1 Offshore and 5Th Planet is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on 5Th Planet Games are associated (or correlated) with Sea1 Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea1 Offshore has no effect on the direction of 5Th Planet i.e., 5Th Planet and Sea1 Offshore go up and down completely randomly.
Pair Corralation between 5Th Planet and Sea1 Offshore
Assuming the 90 days trading horizon 5Th Planet Games is expected to generate 1.32 times more return on investment than Sea1 Offshore. However, 5Th Planet is 1.32 times more volatile than Sea1 Offshore. It trades about 0.19 of its potential returns per unit of risk. Sea1 Offshore is currently generating about 0.07 per unit of risk. If you would invest 105.00 in 5Th Planet Games on September 4, 2024 and sell it today you would earn a total of 15.00 from holding 5Th Planet Games or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
5Th Planet Games vs. Sea1 Offshore
Performance |
| Timeline |
| 5Th Planet Games |
| Sea1 Offshore |
5Th Planet and Sea1 Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5Th Planet and Sea1 Offshore
The main advantage of trading using opposite 5Th Planet and Sea1 Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5Th Planet position performs unexpectedly, Sea1 Offshore can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sea1 Offshore will offset losses from the drop in Sea1 Offshore's long position.| 5Th Planet vs. Solstad Offsho | 5Th Planet vs. Saga Pure ASA | 5Th Planet vs. REC Silicon ASA | 5Th Planet vs. Kongsberg Automotive Holding |
| Sea1 Offshore vs. Equinor ASA | Sea1 Offshore vs. DnB ASA | Sea1 Offshore vs. Aker BP ASA | Sea1 Offshore vs. Telenor ASA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |