Correlation Between NORDIC HALIBUT and SOLSTAD OFFSHORE
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and SOLSTAD 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 NORDIC HALIBUT and SOLSTAD OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORDIC HALIBUT AS and SOLSTAD OFFSHORE NK, you can compare the effects of market volatilities on NORDIC HALIBUT and SOLSTAD 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 NORDIC HALIBUT with a short position of SOLSTAD OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and SOLSTAD OFFSHORE.
Diversification Opportunities for NORDIC HALIBUT and SOLSTAD OFFSHORE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORDIC and SOLSTAD is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and SOLSTAD OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOLSTAD OFFSHORE and NORDIC HALIBUT 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 NORDIC HALIBUT AS are associated (or correlated) with SOLSTAD OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOLSTAD OFFSHORE has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and SOLSTAD OFFSHORE go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and SOLSTAD OFFSHORE
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the SOLSTAD OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, NORDIC HALIBUT AS is 1.58 times less risky than SOLSTAD OFFSHORE. The stock trades about -0.25 of its potential returns per unit of risk. The SOLSTAD OFFSHORE NK is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 263.00 in SOLSTAD OFFSHORE NK on September 13, 2024 and sell it today you would earn a total of 67.00 from holding SOLSTAD OFFSHORE NK or generate 25.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. SOLSTAD OFFSHORE NK
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| SOLSTAD OFFSHORE |
NORDIC HALIBUT and SOLSTAD OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and SOLSTAD OFFSHORE
The main advantage of trading using opposite NORDIC HALIBUT and SOLSTAD OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, SOLSTAD 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 SOLSTAD OFFSHORE will offset losses from the drop in SOLSTAD OFFSHORE's long position.| NORDIC HALIBUT vs. HEALTHCARE REAL A | NORDIC HALIBUT vs. ANTA SPORTS PRODUCT | NORDIC HALIBUT vs. Big 5 Sporting | NORDIC HALIBUT vs. ATRYS HEALTH SA |
| SOLSTAD OFFSHORE vs. Superior Plus Corp | SOLSTAD OFFSHORE vs. SIVERS SEMICONDUCTORS AB | SOLSTAD OFFSHORE vs. CHINA HUARONG ENERHD 50 | SOLSTAD OFFSHORE vs. NORDIC HALIBUT AS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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