Correlation Between Eidesvik Offshore and TIMES CHINA
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and TIMES CHINA 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 TIMES CHINA 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 TIMES CHINA HLDGS, you can compare the effects of market volatilities on Eidesvik Offshore and TIMES CHINA 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 TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and TIMES CHINA.
Diversification Opportunities for Eidesvik Offshore and TIMES CHINA
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eidesvik and TIMES is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS 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 TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and TIMES CHINA go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and TIMES CHINA
Assuming the 90 days trading horizon Eidesvik Offshore is expected to generate 4.92 times less return on investment than TIMES CHINA. But when comparing it to its historical volatility, Eidesvik Offshore ASA is 5.26 times less risky than TIMES CHINA. It trades about 0.05 of its potential returns per unit of risk. TIMES CHINA HLDGS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 18.00 in TIMES CHINA HLDGS on September 5, 2024 and sell it today you would lose (14.20) from holding TIMES CHINA HLDGS or give up 78.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. TIMES CHINA HLDGS
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| TIMES CHINA HLDGS |
Eidesvik Offshore and TIMES CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and TIMES CHINA
The main advantage of trading using opposite Eidesvik Offshore and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA'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 |
| TIMES CHINA vs. SBI Insurance Group | TIMES CHINA vs. Plastic Omnium | TIMES CHINA vs. NAKED WINES PLC | TIMES CHINA vs. Materialise NV |
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.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stocks Directory Find actively traded stocks across global markets |