Correlation Between Eidesvik Offshore and SEI INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and SEI INVESTMENTS 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 SEI INVESTMENTS 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 SEI INVESTMENTS, you can compare the effects of market volatilities on Eidesvik Offshore and SEI INVESTMENTS 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 SEI INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and SEI INVESTMENTS.
Diversification Opportunities for Eidesvik Offshore and SEI INVESTMENTS
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eidesvik and SEI is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and SEI INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI INVESTMENTS 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 SEI INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI INVESTMENTS has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and SEI INVESTMENTS go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and SEI INVESTMENTS
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 3.01 times more return on investment than SEI INVESTMENTS. However, Eidesvik Offshore is 3.01 times more volatile than SEI INVESTMENTS. It trades about 0.07 of its potential returns per unit of risk. SEI INVESTMENTS is currently generating about 0.13 per unit of risk. If you would invest 108.00 in Eidesvik Offshore ASA on October 22, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. SEI INVESTMENTS
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| SEI INVESTMENTS |
Eidesvik Offshore and SEI INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and SEI INVESTMENTS
The main advantage of trading using opposite Eidesvik Offshore and SEI INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, SEI INVESTMENTS 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 SEI INVESTMENTS will offset losses from the drop in SEI INVESTMENTS's long position.| Eidesvik Offshore vs. MAG SILVER | Eidesvik Offshore vs. Zijin Mining Group | Eidesvik Offshore vs. GALENA MINING LTD | Eidesvik Offshore vs. SILICON LABORATOR |
| SEI INVESTMENTS vs. Zoom Video Communications | SEI INVESTMENTS vs. Eidesvik Offshore ASA | SEI INVESTMENTS vs. HEMISPHERE EGY | SEI INVESTMENTS vs. China Communications Services |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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