Correlation Between EIDESVIK OFFSHORE and PNC Financial
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and PNC Financial 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 PNC Financial 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 PNC Financial Services, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and PNC Financial 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 PNC Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and PNC Financial.
Diversification Opportunities for EIDESVIK OFFSHORE and PNC Financial
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EIDESVIK and PNC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and PNC Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Financial Services 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 PNC Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Financial Services has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and PNC Financial go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and PNC Financial
Assuming the 90 days horizon EIDESVIK OFFSHORE NK is expected to generate 3.29 times more return on investment than PNC Financial. However, EIDESVIK OFFSHORE is 3.29 times more volatile than PNC Financial Services. It trades about 0.05 of its potential returns per unit of risk. PNC Financial Services is currently generating about -0.15 per unit of risk. If you would invest 108.00 in EIDESVIK OFFSHORE NK on October 11, 2024 and sell it today you would earn a total of 2.00 from holding EIDESVIK OFFSHORE NK or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
EIDESVIK OFFSHORE NK vs. PNC Financial Services
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| PNC Financial Services |
EIDESVIK OFFSHORE and PNC Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and PNC Financial
The main advantage of trading using opposite EIDESVIK OFFSHORE and PNC Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, PNC Financial 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 PNC Financial will offset losses from the drop in PNC Financial's long position.| EIDESVIK OFFSHORE vs. NEWELL RUBBERMAID | EIDESVIK OFFSHORE vs. PARKEN Sport Entertainment | EIDESVIK OFFSHORE vs. Rayonier Advanced Materials | EIDESVIK OFFSHORE vs. DICKS Sporting Goods |
| PNC Financial vs. Monument Mining Limited | PNC Financial vs. ELMOS SEMICONDUCTOR | PNC Financial vs. EIDESVIK OFFSHORE NK | PNC Financial vs. GALENA MINING LTD |
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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