Correlation Between Eidesvik Offshore and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and ALBIS LEASING 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 ALBIS LEASING 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 ALBIS LEASING AG, you can compare the effects of market volatilities on Eidesvik Offshore and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and ALBIS LEASING.
Diversification Opportunities for Eidesvik Offshore and ALBIS LEASING
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eidesvik and ALBIS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and ALBIS LEASING
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 3.37 times more return on investment than ALBIS LEASING. However, Eidesvik Offshore is 3.37 times more volatile than ALBIS LEASING AG. It trades about 0.03 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.07 per unit of risk. If you would invest 90.00 in Eidesvik Offshore ASA on November 6, 2024 and sell it today you would earn a total of 20.00 from holding Eidesvik Offshore ASA or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. ALBIS LEASING AG
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| ALBIS LEASING AG |
Eidesvik Offshore and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and ALBIS LEASING
The main advantage of trading using opposite Eidesvik Offshore and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Eidesvik Offshore vs. United States Steel | Eidesvik Offshore vs. BRIT AMER TOBACCO | Eidesvik Offshore vs. ELL ENVIRONHLDGS HD 0001 | Eidesvik Offshore vs. Mount Gibson Iron |
| ALBIS LEASING vs. Methode Electronics | ALBIS LEASING vs. CLEAN ENERGY FUELS | ALBIS LEASING vs. THORNEY TECHS LTD | ALBIS LEASING vs. GLG LIFE TECH |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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