Correlation Between Beeks Trading and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both Beeks Trading and SBM 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 Beeks Trading and SBM Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and SBM Offshore NV, you can compare the effects of market volatilities on Beeks Trading and SBM 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 Beeks Trading with a short position of SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and SBM Offshore.
Diversification Opportunities for Beeks Trading and SBM Offshore
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beeks and SBM is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV and Beeks Trading 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 Beeks Trading are associated (or correlated) with SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of Beeks Trading i.e., Beeks Trading and SBM Offshore go up and down completely randomly.
Pair Corralation between Beeks Trading and SBM Offshore
Assuming the 90 days trading horizon Beeks Trading is expected to generate 1.93 times more return on investment than SBM Offshore. However, Beeks Trading is 1.93 times more volatile than SBM Offshore NV. It trades about 0.03 of its potential returns per unit of risk. SBM Offshore NV is currently generating about 0.04 per unit of risk. If you would invest 26,300 in Beeks Trading on November 2, 2024 and sell it today you would earn a total of 1,200 from holding Beeks Trading or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.05% |
| Values | Daily Returns |
Beeks Trading vs. SBM Offshore NV
Performance |
| Timeline |
| Beeks Trading |
| SBM Offshore NV |
Beeks Trading and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and SBM Offshore
The main advantage of trading using opposite Beeks Trading and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading position performs unexpectedly, SBM 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 SBM Offshore will offset losses from the drop in SBM Offshore's long position.| Beeks Trading vs. Coor Service Management | Beeks Trading vs. Infrastrutture Wireless Italiane | Beeks Trading vs. Golden Metal Resources | Beeks Trading vs. Litigation Capital Management |
| SBM Offshore vs. Ecclesiastical Insurance Office | SBM Offshore vs. bet at home AG | SBM Offshore vs. Silver Bullet Data | SBM Offshore vs. Anglo Asian Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets |