Correlation Between Eidesvik Offshore and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and Molson Coors 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 Molson Coors 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 Molson Coors Beverage, you can compare the effects of market volatilities on Eidesvik Offshore and Molson Coors 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 Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and Molson Coors.
Diversification Opportunities for Eidesvik Offshore and Molson Coors
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eidesvik and Molson is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage 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 Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Beverage has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and Molson Coors go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and Molson Coors
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 1.93 times more return on investment than Molson Coors. However, Eidesvik Offshore is 1.93 times more volatile than Molson Coors Beverage. It trades about 0.07 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about -0.08 per unit of risk. If you would invest 108.00 in Eidesvik Offshore ASA on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Eidesvik Offshore ASA or generate 2.78% 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. Molson Coors Beverage
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| Molson Coors Beverage |
Eidesvik Offshore and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and Molson Coors
The main advantage of trading using opposite Eidesvik Offshore and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.| Eidesvik Offshore vs. Television Broadcasts Limited | Eidesvik Offshore vs. Unity Software | Eidesvik Offshore vs. GOLD ROAD RES | Eidesvik Offshore vs. TRAINLINE PLC LS |
| Molson Coors vs. KINGBOARD CHEMICAL | Molson Coors vs. Keck Seng Investments | Molson Coors vs. Silicon Motion Technology | Molson Coors vs. Gladstone 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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