Correlation Between Eidesvik Offshore and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and CyberArk Software 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 CyberArk Software 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 CyberArk Software, you can compare the effects of market volatilities on Eidesvik Offshore and CyberArk Software 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 CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and CyberArk Software.
Diversification Opportunities for Eidesvik Offshore and CyberArk Software
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eidesvik and CyberArk is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software 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 CyberArk Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberArk Software has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and CyberArk Software go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and CyberArk Software
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to under-perform the CyberArk Software. But the stock apears to be less risky and, when comparing its historical volatility, Eidesvik Offshore ASA is 2.03 times less risky than CyberArk Software. The stock trades about -0.09 of its potential returns per unit of risk. The CyberArk Software is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 25,450 in CyberArk Software on September 1, 2024 and sell it today you would earn a total of 4,580 from holding CyberArk Software or generate 18.0% 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. CyberArk Software
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| CyberArk Software |
Eidesvik Offshore and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and CyberArk Software
The main advantage of trading using opposite Eidesvik Offshore and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, CyberArk Software 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 CyberArk Software will offset losses from the drop in CyberArk Software's long position.| Eidesvik Offshore vs. BURLINGTON STORES | Eidesvik Offshore vs. Burlington Stores | Eidesvik Offshore vs. BJs Wholesale Club | Eidesvik Offshore vs. RETAIL FOOD GROUP |
| CyberArk Software vs. Reliance Steel Aluminum | CyberArk Software vs. LEGACY IRON ORE | CyberArk Software vs. RELIANCE STEEL AL | CyberArk Software vs. NIPPON STEEL SPADR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |