Correlation Between MAVEN WIRELESS and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS 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 MAVEN WIRELESS and EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on MAVEN WIRELESS 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 MAVEN WIRELESS with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and EIDESVIK OFFSHORE.
Diversification Opportunities for MAVEN WIRELESS and EIDESVIK OFFSHORE
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAVEN and EIDESVIK is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS i.e., MAVEN WIRELESS and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and EIDESVIK OFFSHORE
Assuming the 90 days horizon MAVEN WIRELESS is expected to generate 20.62 times less return on investment than EIDESVIK OFFSHORE. In addition to that, MAVEN WIRELESS is 1.02 times more volatile than EIDESVIK OFFSHORE NK. It trades about 0.0 of its total potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about 0.03 per unit of volatility. If you would invest 95.00 in EIDESVIK OFFSHORE NK on August 24, 2024 and sell it today you would earn a total of 22.00 from holding EIDESVIK OFFSHORE NK or generate 23.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| EIDESVIK OFFSHORE |
MAVEN WIRELESS and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and EIDESVIK OFFSHORE
The main advantage of trading using opposite MAVEN WIRELESS and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS 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.| MAVEN WIRELESS vs. T Mobile | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG | MAVEN WIRELESS vs. Nippon Telegraph and |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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