Correlation Between EIDESVIK OFFSHORE and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and THAI BEVERAGE 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 THAI BEVERAGE 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 THAI BEVERAGE, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and THAI BEVERAGE 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 THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and THAI BEVERAGE.
Diversification Opportunities for EIDESVIK OFFSHORE and THAI BEVERAGE
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between EIDESVIK and THAI is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE 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 THAI BEVERAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THAI BEVERAGE has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and THAI BEVERAGE
Assuming the 90 days horizon EIDESVIK OFFSHORE NK is expected to generate 1.02 times more return on investment than THAI BEVERAGE. However, EIDESVIK OFFSHORE is 1.02 times more volatile than THAI BEVERAGE. It trades about 0.18 of its potential returns per unit of risk. THAI BEVERAGE is currently generating about -0.08 per unit of risk. If you would invest 109.00 in EIDESVIK OFFSHORE NK on October 16, 2024 and sell it today you would earn a total of 6.00 from holding EIDESVIK OFFSHORE NK or generate 5.5% 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. THAI BEVERAGE
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| THAI BEVERAGE |
EIDESVIK OFFSHORE and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and THAI BEVERAGE
The main advantage of trading using opposite EIDESVIK OFFSHORE and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, THAI BEVERAGE 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 THAI BEVERAGE will offset losses from the drop in THAI BEVERAGE's long position.| EIDESVIK OFFSHORE vs. VARIOUS EATERIES LS | EIDESVIK OFFSHORE vs. SMA Solar Technology | EIDESVIK OFFSHORE vs. The Boston Beer | EIDESVIK OFFSHORE vs. X FAB Silicon Foundries |
| THAI BEVERAGE vs. NIGHTINGALE HEALTH EO | THAI BEVERAGE vs. EPSILON HEALTHCARE LTD | THAI BEVERAGE vs. STMICROELECTRONICS | THAI BEVERAGE vs. EIDESVIK OFFSHORE NK |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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