Correlation Between EIDESVIK OFFSHORE and Marcus Millichap
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and Marcus Millichap 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 Marcus Millichap 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 Marcus Millichap, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and Marcus Millichap 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 Marcus Millichap. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and Marcus Millichap.
Diversification Opportunities for EIDESVIK OFFSHORE and Marcus Millichap
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EIDESVIK and Marcus is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and Marcus Millichap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus Millichap 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 Marcus Millichap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus Millichap has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and Marcus Millichap go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and Marcus Millichap
Assuming the 90 days horizon EIDESVIK OFFSHORE is expected to generate 7.1 times less return on investment than Marcus Millichap. But when comparing it to its historical volatility, EIDESVIK OFFSHORE NK is 2.1 times less risky than Marcus Millichap. It trades about 0.04 of its potential returns per unit of risk. Marcus Millichap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,460 in Marcus Millichap on September 4, 2024 and sell it today you would earn a total of 260.00 from holding Marcus Millichap or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
EIDESVIK OFFSHORE NK vs. Marcus Millichap
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| Marcus Millichap |
EIDESVIK OFFSHORE and Marcus Millichap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and Marcus Millichap
The main advantage of trading using opposite EIDESVIK OFFSHORE and Marcus Millichap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, Marcus Millichap 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 Marcus Millichap will offset losses from the drop in Marcus Millichap's long position.| EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc |
| Marcus Millichap vs. ADRIATIC METALS LS 013355 | Marcus Millichap vs. Suntory Beverage Food | Marcus Millichap vs. Tsingtao Brewery | Marcus Millichap vs. THAI BEVERAGE |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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