Correlation Between EIDESVIK OFFSHORE and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and PKSHA TECHNOLOGY.
Diversification Opportunities for EIDESVIK OFFSHORE and PKSHA TECHNOLOGY
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EIDESVIK and PKSHA is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and PKSHA TECHNOLOGY
Assuming the 90 days horizon EIDESVIK OFFSHORE NK is expected to under-perform the PKSHA TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, EIDESVIK OFFSHORE NK is 1.37 times less risky than PKSHA TECHNOLOGY. The stock trades about -0.06 of its potential returns per unit of risk. The PKSHA TECHNOLOGY INC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,100 in PKSHA TECHNOLOGY INC on August 28, 2024 and sell it today you would earn a total of 20.00 from holding PKSHA TECHNOLOGY INC or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIDESVIK OFFSHORE NK vs. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| PKSHA TECHNOLOGY INC |
EIDESVIK OFFSHORE and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and PKSHA TECHNOLOGY
The main advantage of trading using opposite EIDESVIK OFFSHORE and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.| EIDESVIK OFFSHORE vs. MOVIE GAMES SA | EIDESVIK OFFSHORE vs. Townsquare Media | EIDESVIK OFFSHORE vs. Flutter Entertainment PLC | EIDESVIK OFFSHORE vs. RCS MediaGroup SpA |
| PKSHA TECHNOLOGY vs. Hyster Yale Materials Handling | PKSHA TECHNOLOGY vs. EAGLE MATERIALS | PKSHA TECHNOLOGY vs. Applied Materials | PKSHA TECHNOLOGY vs. Rayonier Advanced Materials |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |