Correlation Between Eidesvik Offshore and CENTRAL PUERTO
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and CENTRAL PUERTO 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 CENTRAL PUERTO 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 CENTRAL PUERTO ADR1, you can compare the effects of market volatilities on Eidesvik Offshore and CENTRAL PUERTO 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 CENTRAL PUERTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and CENTRAL PUERTO.
Diversification Opportunities for Eidesvik Offshore and CENTRAL PUERTO
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eidesvik and CENTRAL is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and CENTRAL PUERTO ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL PUERTO ADR1 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 CENTRAL PUERTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL PUERTO ADR1 has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and CENTRAL PUERTO go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and CENTRAL PUERTO
Assuming the 90 days trading horizon Eidesvik Offshore is expected to generate 4.3 times less return on investment than CENTRAL PUERTO. But when comparing it to its historical volatility, Eidesvik Offshore ASA is 1.15 times less risky than CENTRAL PUERTO. It trades about 0.03 of its potential returns per unit of risk. CENTRAL PUERTO ADR1 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 603.00 in CENTRAL PUERTO ADR1 on September 14, 2024 and sell it today you would earn a total of 777.00 from holding CENTRAL PUERTO ADR1 or generate 128.86% 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. CENTRAL PUERTO ADR1
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| CENTRAL PUERTO ADR1 |
Eidesvik Offshore and CENTRAL PUERTO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and CENTRAL PUERTO
The main advantage of trading using opposite Eidesvik Offshore and CENTRAL PUERTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, CENTRAL PUERTO 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 CENTRAL PUERTO will offset losses from the drop in CENTRAL PUERTO's long position.| Eidesvik Offshore vs. Tenaris SA | Eidesvik Offshore vs. NOV Inc | Eidesvik Offshore vs. Superior Plus Corp | Eidesvik Offshore vs. SIVERS SEMICONDUCTORS AB |
| CENTRAL PUERTO vs. Eidesvik Offshore ASA | CENTRAL PUERTO vs. ECHO INVESTMENT ZY | CENTRAL PUERTO vs. REGAL ASIAN INVESTMENTS | CENTRAL PUERTO vs. REINET INVESTMENTS SCA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |