Correlation Between EIDESVIK OFFSHORE and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and JINS HOLDINGS 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 JINS HOLDINGS 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 JINS HOLDINGS INC, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and JINS HOLDINGS 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 JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and JINS HOLDINGS.
Diversification Opportunities for EIDESVIK OFFSHORE and JINS HOLDINGS
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between EIDESVIK and JINS is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC 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 JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and JINS HOLDINGS
Assuming the 90 days horizon EIDESVIK OFFSHORE NK is expected to under-perform the JINS HOLDINGS. But the stock apears to be less risky and, when comparing its historical volatility, EIDESVIK OFFSHORE NK is 1.61 times less risky than JINS HOLDINGS. The stock trades about -0.09 of its potential returns per unit of risk. The JINS HOLDINGS INC is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,920 in JINS HOLDINGS INC on November 4, 2024 and sell it today you would earn a total of 420.00 from holding JINS HOLDINGS INC or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIDESVIK OFFSHORE NK vs. JINS HOLDINGS INC
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| JINS HOLDINGS INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
EIDESVIK OFFSHORE and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and JINS HOLDINGS
The main advantage of trading using opposite EIDESVIK OFFSHORE and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| EIDESVIK OFFSHORE vs. Gaztransport Technigaz SA | EIDESVIK OFFSHORE vs. PENN Entertainment | EIDESVIK OFFSHORE vs. Siamgas And Petrochemicals | EIDESVIK OFFSHORE vs. Texas Roadhouse |
| JINS HOLDINGS vs. LOANDEPOT INC A | JINS HOLDINGS vs. RYU Apparel | JINS HOLDINGS vs. MHP Hotel AG | JINS HOLDINGS vs. Pebblebrook Hotel Trust |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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