Correlation Between DnB ASA and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both DnB ASA 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 DnB ASA and Eidesvik Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DnB ASA and Eidesvik Offshore ASA, you can compare the effects of market volatilities on DnB ASA 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 DnB ASA with a short position of Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of DnB ASA and Eidesvik Offshore.
Diversification Opportunities for DnB ASA and Eidesvik Offshore
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DnB and Eidesvik is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding DnB ASA 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 DnB ASA 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 DnB ASA 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 DnB ASA i.e., DnB ASA and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between DnB ASA and Eidesvik Offshore
Assuming the 90 days trading horizon DnB ASA is expected to generate 0.54 times more return on investment than Eidesvik Offshore. However, DnB ASA is 1.85 times less risky than Eidesvik Offshore. It trades about 0.09 of its potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about -0.16 per unit of risk. If you would invest 22,720 in DnB ASA on September 1, 2024 and sell it today you would earn a total of 350.00 from holding DnB ASA or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DnB ASA vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| DnB ASA |
| Eidesvik Offshore ASA |
DnB ASA and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DnB ASA and Eidesvik Offshore
The main advantage of trading using opposite DnB ASA and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DnB ASA 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.| DnB ASA vs. Telenor ASA | DnB ASA vs. Storebrand ASA | DnB ASA vs. Orkla ASA | DnB ASA vs. Gjensidige Forsikring ASA |
| Eidesvik Offshore vs. Solstad Offsho | Eidesvik Offshore vs. Havila Shipping ASA | Eidesvik Offshore vs. Prosafe SE | Eidesvik Offshore vs. BW Offshore |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |