Correlation Between BOS BETTER and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both BOS BETTER 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 BOS BETTER and Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and Solstad Offshore ASA, you can compare the effects of market volatilities on BOS BETTER 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 BOS BETTER with a short position of Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Solstad Offshore.
Diversification Opportunities for BOS BETTER and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA and BOS BETTER 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 BOS BETTER ONLINE 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 ASA has no effect on the direction of BOS BETTER i.e., BOS BETTER and Solstad Offshore go up and down completely randomly.
Pair Corralation between BOS BETTER and Solstad Offshore
If you would invest 278.00 in Solstad Offshore ASA on September 1, 2024 and sell it today you would earn a total of 71.00 from holding Solstad Offshore ASA or generate 25.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. Solstad Offshore ASA
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Solstad Offshore ASA |
BOS BETTER and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Solstad Offshore
The main advantage of trading using opposite BOS BETTER and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER 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.| BOS BETTER vs. SIVERS SEMICONDUCTORS AB | BOS BETTER vs. Darden Restaurants | BOS BETTER vs. Reliance Steel Aluminum | BOS BETTER vs. Q2M Managementberatung AG |
| Solstad Offshore vs. Tradeweb Markets | Solstad Offshore vs. National Retail Properties | Solstad Offshore vs. Zoom Video Communications | Solstad Offshore vs. Auto Trader 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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