Correlation Between PKSHA TECHNOLOGY and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and EIDESVIK 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 PKSHA TECHNOLOGY and EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and EIDESVIK 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 PKSHA TECHNOLOGY with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and EIDESVIK OFFSHORE.
Diversification Opportunities for PKSHA TECHNOLOGY and EIDESVIK OFFSHORE
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PKSHA and EIDESVIK is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and EIDESVIK OFFSHORE
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.4 times more return on investment than EIDESVIK OFFSHORE. However, PKSHA TECHNOLOGY is 1.4 times more volatile than EIDESVIK OFFSHORE NK. It trades about 0.06 of its potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about 0.07 per unit of risk. If you would invest 2,100 in PKSHA TECHNOLOGY INC on August 25, 2024 and sell it today you would earn a total of 60.00 from holding PKSHA TECHNOLOGY INC or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| EIDESVIK OFFSHORE |
PKSHA TECHNOLOGY and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and EIDESVIK OFFSHORE
The main advantage of trading using opposite PKSHA TECHNOLOGY and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, EIDESVIK 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| PKSHA TECHNOLOGY vs. Microsoft | PKSHA TECHNOLOGY vs. Adobe Inc | PKSHA TECHNOLOGY vs. ADYEN NV UNSPADR001 |
| EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |