Correlation Between Eidesvik Offshore and ABL Group
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and ABL Group 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 ABL Group 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 ABL Group ASA, you can compare the effects of market volatilities on Eidesvik Offshore and ABL Group 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 ABL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and ABL Group.
Diversification Opportunities for Eidesvik Offshore and ABL Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eidesvik and ABL is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and ABL Group ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABL Group ASA 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 ABL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABL Group ASA has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and ABL Group go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and ABL Group
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 2.24 times more return on investment than ABL Group. However, Eidesvik Offshore is 2.24 times more volatile than ABL Group ASA. It trades about 0.0 of its potential returns per unit of risk. ABL Group ASA is currently generating about 0.0 per unit of risk. If you would invest 1,350 in Eidesvik Offshore ASA on November 9, 2024 and sell it today you would lose (2.00) from holding Eidesvik Offshore ASA or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. ABL Group ASA
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| ABL Group ASA |
Eidesvik Offshore and ABL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and ABL Group
The main advantage of trading using opposite Eidesvik Offshore and ABL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, ABL Group 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 ABL Group will offset losses from the drop in ABL Group's long position.| Eidesvik Offshore vs. Solstad Offsho | Eidesvik Offshore vs. Havila Shipping ASA | Eidesvik Offshore vs. Prosafe SE | Eidesvik Offshore vs. BW Offshore |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |