Correlation Between Eidesvik Offshore and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and MOVIE GAMES 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 MOVIE GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eidesvik Offshore ASA and MOVIE GAMES SA, you can compare the effects of market volatilities on Eidesvik Offshore and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and MOVIE GAMES.
Diversification Opportunities for Eidesvik Offshore and MOVIE GAMES
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eidesvik and MOVIE is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA 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 ASA are associated (or correlated) with MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and MOVIE GAMES go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and MOVIE GAMES
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to under-perform the MOVIE GAMES. But the stock apears to be less risky and, when comparing its historical volatility, Eidesvik Offshore ASA is 2.15 times less risky than MOVIE GAMES. The stock trades about -0.07 of its potential returns per unit of risk. The MOVIE GAMES SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 378.00 in MOVIE GAMES SA on November 2, 2024 and sell it today you would earn a total of 42.00 from holding MOVIE GAMES SA or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. MOVIE GAMES SA
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| MOVIE GAMES SA |
Eidesvik Offshore and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and MOVIE GAMES
The main advantage of trading using opposite Eidesvik Offshore and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| Eidesvik Offshore vs. TITANIUM TRANSPORTGROUP | Eidesvik Offshore vs. Ultra Clean Holdings | Eidesvik Offshore vs. CarsalesCom | Eidesvik Offshore vs. MUTUIONLINE |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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