Correlation Between National Retail and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and Solstad Offshore ASA, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and Solstad Offshore.
Diversification Opportunities for National Retail and Solstad Offshore
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Solstad is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties 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 National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and Solstad Offshore go up and down completely randomly.
Pair Corralation between National Retail and Solstad Offshore
Assuming the 90 days trading horizon National Retail is expected to generate 6.36 times less return on investment than Solstad Offshore. But when comparing it to its historical volatility, National Retail Properties is 3.28 times less risky than Solstad Offshore. It trades about 0.02 of its potential returns per unit of risk. Solstad Offshore ASA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Solstad Offshore ASA on September 3, 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Retail Properties vs. Solstad Offshore ASA
Performance |
| Timeline |
| National Retail Prop |
| Solstad Offshore ASA |
National Retail and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and Solstad Offshore
The main advantage of trading using opposite National Retail and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. QBE Insurance Group | National Retail vs. United Natural Foods | National Retail vs. TYSON FOODS A | National Retail vs. Luckin Coffee |
| Solstad Offshore vs. Liberty Broadband | Solstad Offshore vs. CHINA EDUCATION GROUP | Solstad Offshore vs. BROADSTNET LEADL 00025 | Solstad Offshore vs. EEDUCATION ALBERT AB |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |