Correlation Between Boston Beer and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Boston Beer 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 Boston Beer and EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boston Beer and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on Boston Beer 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 Boston Beer with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and EIDESVIK OFFSHORE.
Diversification Opportunities for Boston Beer and EIDESVIK OFFSHORE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boston and EIDESVIK is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE and Boston Beer 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 The Boston Beer 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 Boston Beer i.e., Boston Beer and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between Boston Beer and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon The Boston Beer is expected to under-perform the EIDESVIK OFFSHORE. In addition to that, Boston Beer is 1.1 times more volatile than EIDESVIK OFFSHORE NK. It trades about -0.45 of its total potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about 0.06 per unit of volatility. If you would invest 111.00 in EIDESVIK OFFSHORE NK on October 30, 2024 and sell it today you would earn a total of 2.00 from holding EIDESVIK OFFSHORE NK or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boston Beer vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| Boston Beer |
| EIDESVIK OFFSHORE |
Boston Beer and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and EIDESVIK OFFSHORE
The main advantage of trading using opposite Boston Beer and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer 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.| Boston Beer vs. Zijin Mining Group | Boston Beer vs. Hanison Construction Holdings | Boston Beer vs. Granite Construction | Boston Beer vs. DISTRICT METALS |
| EIDESVIK OFFSHORE vs. FIREWEED METALS P | EIDESVIK OFFSHORE vs. STMICROELECTRONICS | EIDESVIK OFFSHORE vs. Transport International Holdings | EIDESVIK OFFSHORE vs. Fortescue Metals Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |