Correlation Between MYFAIR GOLD and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both MYFAIR GOLD 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 MYFAIR GOLD and Eidesvik Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYFAIR GOLD P and Eidesvik Offshore ASA, you can compare the effects of market volatilities on MYFAIR GOLD 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 MYFAIR GOLD with a short position of Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYFAIR GOLD and Eidesvik Offshore.
Diversification Opportunities for MYFAIR GOLD and Eidesvik Offshore
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MYFAIR and Eidesvik is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding MYFAIR GOLD P and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA and MYFAIR GOLD 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 MYFAIR GOLD P 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 ASA has no effect on the direction of MYFAIR GOLD i.e., MYFAIR GOLD and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between MYFAIR GOLD and Eidesvik Offshore
Assuming the 90 days horizon MYFAIR GOLD P is expected to under-perform the Eidesvik Offshore. In addition to that, MYFAIR GOLD is 1.07 times more volatile than Eidesvik Offshore ASA. It trades about 0.0 of its total potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about 0.05 per unit of volatility. If you would invest 82.00 in Eidesvik Offshore ASA on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Eidesvik Offshore ASA or generate 36.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
MYFAIR GOLD P vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| MYFAIR GOLD P |
| Eidesvik Offshore ASA |
MYFAIR GOLD and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYFAIR GOLD and Eidesvik Offshore
The main advantage of trading using opposite MYFAIR GOLD and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYFAIR GOLD 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.| MYFAIR GOLD vs. Franco Nevada | MYFAIR GOLD vs. Agnico Eagle Mines | MYFAIR GOLD vs. Superior Plus Corp | MYFAIR GOLD vs. NMI Holdings |
| Eidesvik Offshore vs. Jacquet Metal Service | Eidesvik Offshore vs. Summit Hotel Properties | Eidesvik Offshore vs. American Airlines Group | Eidesvik Offshore vs. MIRAMAR HOTEL INV |
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 Stocks Directory module to find actively traded stocks across global markets.
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