Correlation Between Eidesvik Offshore and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on Eidesvik Offshore and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and COLUMBIA SPORTSWEAR.
Diversification Opportunities for Eidesvik Offshore and COLUMBIA SPORTSWEAR
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eidesvik and COLUMBIA is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA SPORTSWEAR has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and COLUMBIA SPORTSWEAR
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 3.64 times more return on investment than COLUMBIA SPORTSWEAR. However, Eidesvik Offshore is 3.64 times more volatile than COLUMBIA SPORTSWEAR. It trades about 0.01 of its potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about -0.3 per unit of risk. If you would invest 111.00 in Eidesvik Offshore ASA on October 17, 2024 and sell it today you would earn a total of 0.00 from holding Eidesvik Offshore ASA or generate 0.0% 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. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| COLUMBIA SPORTSWEAR |
Eidesvik Offshore and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite Eidesvik Offshore and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR will offset losses from the drop in COLUMBIA SPORTSWEAR's long position.| Eidesvik Offshore vs. STORE ELECTRONIC | Eidesvik Offshore vs. Delta Electronics Public | Eidesvik Offshore vs. Guidewire Software | Eidesvik Offshore vs. MAGIC SOFTWARE ENTR |
| COLUMBIA SPORTSWEAR vs. ULTRA CLEAN HLDGS | COLUMBIA SPORTSWEAR vs. DIVERSIFIED ROYALTY | COLUMBIA SPORTSWEAR vs. EAT WELL INVESTMENT | COLUMBIA SPORTSWEAR vs. JLF INVESTMENT |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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