Correlation Between EIDESVIK OFFSHORE and MONGOLIAN MINING
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and MONGOLIAN MINING 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 EIDESVIK OFFSHORE and MONGOLIAN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EIDESVIK OFFSHORE NK and MONGOLIAN MINING CRPREGS, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and MONGOLIAN MINING 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 EIDESVIK OFFSHORE with a short position of MONGOLIAN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and MONGOLIAN MINING.
Diversification Opportunities for EIDESVIK OFFSHORE and MONGOLIAN MINING
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EIDESVIK and MONGOLIAN is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and MONGOLIAN MINING CRPREGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MONGOLIAN MINING CRPREGS and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE NK are associated (or correlated) with MONGOLIAN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MONGOLIAN MINING CRPREGS has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and MONGOLIAN MINING go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and MONGOLIAN MINING
Assuming the 90 days horizon EIDESVIK OFFSHORE is expected to generate 2.04 times less return on investment than MONGOLIAN MINING. But when comparing it to its historical volatility, EIDESVIK OFFSHORE NK is 1.64 times less risky than MONGOLIAN MINING. It trades about 0.04 of its potential returns per unit of risk. MONGOLIAN MINING CRPREGS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 66.00 in MONGOLIAN MINING CRPREGS on September 14, 2024 and sell it today you would earn a total of 26.00 from holding MONGOLIAN MINING CRPREGS or generate 39.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIDESVIK OFFSHORE NK vs. MONGOLIAN MINING CRPREGS
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| MONGOLIAN MINING CRPREGS |
EIDESVIK OFFSHORE and MONGOLIAN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and MONGOLIAN MINING
The main advantage of trading using opposite EIDESVIK OFFSHORE and MONGOLIAN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, MONGOLIAN MINING 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 MONGOLIAN MINING will offset losses from the drop in MONGOLIAN MINING's long position.| EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc |
| MONGOLIAN MINING vs. Superior Plus Corp | MONGOLIAN MINING vs. SIVERS SEMICONDUCTORS AB | MONGOLIAN MINING vs. Norsk Hydro ASA | MONGOLIAN MINING vs. Reliance Steel Aluminum |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets |