Correlation Between Eidesvik Offshore and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and Lloyds Banking 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 Lloyds Banking 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 Lloyds Banking Group, you can compare the effects of market volatilities on Eidesvik Offshore and Lloyds Banking 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 Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and Lloyds Banking.
Diversification Opportunities for Eidesvik Offshore and Lloyds Banking
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eidesvik and Lloyds is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group 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 Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and Lloyds Banking go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and Lloyds Banking
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 1.32 times more return on investment than Lloyds Banking. However, Eidesvik Offshore is 1.32 times more volatile than Lloyds Banking Group. It trades about 0.04 of its potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.05 per unit of risk. If you would invest 92.00 in Eidesvik Offshore ASA on September 4, 2024 and sell it today you would earn a total of 18.00 from holding Eidesvik Offshore ASA or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. Lloyds Banking Group
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| Lloyds Banking Group |
Eidesvik Offshore and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and Lloyds Banking
The main advantage of trading using opposite Eidesvik Offshore and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking'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 |
| Lloyds Banking vs. Eidesvik Offshore ASA | Lloyds Banking vs. BW OFFSHORE LTD | Lloyds Banking vs. SEKISUI CHEMICAL | Lloyds Banking vs. SOLSTAD OFFSHORE NK |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |