Correlation Between Eidesvik Offshore and Apple
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Eidesvik Offshore and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and Apple.
Diversification Opportunities for Eidesvik Offshore and Apple
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eidesvik and Apple is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and Apple go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and Apple
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 2.1 times more return on investment than Apple. However, Eidesvik Offshore is 2.1 times more volatile than Apple Inc. It trades about 0.05 of its potential returns per unit of risk. Apple Inc is currently generating about 0.08 per unit of risk. If you would invest 66.00 in Eidesvik Offshore ASA on September 4, 2024 and sell it today you would earn a total of 44.00 from holding Eidesvik Offshore ASA or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. Apple Inc
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| Apple Inc |
Eidesvik Offshore and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and Apple
The main advantage of trading using opposite Eidesvik Offshore and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Eidesvik Offshore vs. Superior Plus Corp | Eidesvik Offshore vs. NMI Holdings | Eidesvik Offshore vs. Origin Agritech | Eidesvik Offshore vs. SIVERS SEMICONDUCTORS AB |
| Apple vs. CDL INVESTMENT | Apple vs. ULTRA CLEAN HLDGS | Apple vs. Eidesvik Offshore ASA | Apple vs. SBM OFFSHORE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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