Correlation Between Eidesvik Offshore and CARDINAL HEALTH
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and CARDINAL HEALTH 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 CARDINAL HEALTH 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 CARDINAL HEALTH, you can compare the effects of market volatilities on Eidesvik Offshore and CARDINAL HEALTH 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 CARDINAL HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and CARDINAL HEALTH.
Diversification Opportunities for Eidesvik Offshore and CARDINAL HEALTH
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eidesvik and CARDINAL is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and CARDINAL HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARDINAL HEALTH 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 CARDINAL HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARDINAL HEALTH has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and CARDINAL HEALTH go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and CARDINAL HEALTH
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 4.73 times more return on investment than CARDINAL HEALTH. However, Eidesvik Offshore is 4.73 times more volatile than CARDINAL HEALTH. It trades about 0.17 of its potential returns per unit of risk. CARDINAL HEALTH is currently generating about 0.63 per unit of risk. If you would invest 109.00 in Eidesvik Offshore ASA on October 14, 2024 and sell it today you would earn a total of 8.00 from holding Eidesvik Offshore ASA or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. CARDINAL HEALTH
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| CARDINAL HEALTH |
Eidesvik Offshore and CARDINAL HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and CARDINAL HEALTH
The main advantage of trading using opposite Eidesvik Offshore and CARDINAL HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, CARDINAL HEALTH 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 CARDINAL HEALTH will offset losses from the drop in CARDINAL HEALTH's long position.| Eidesvik Offshore vs. PLAYMATES TOYS | Eidesvik Offshore vs. PEPTONIC MEDICAL | Eidesvik Offshore vs. SPECTRAL MEDICAL | Eidesvik Offshore vs. Compugroup Medical SE |
| CARDINAL HEALTH vs. MARKET VECTR RETAIL | CARDINAL HEALTH vs. Eidesvik Offshore ASA | CARDINAL HEALTH vs. Elmos Semiconductor SE | CARDINAL HEALTH vs. BW OFFSHORE LTD |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |