Correlation Between Eidesvik Offshore and Borgestad
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and Borgestad 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 Borgestad 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 Borgestad A, you can compare the effects of market volatilities on Eidesvik Offshore and Borgestad 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 Borgestad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and Borgestad.
Diversification Opportunities for Eidesvik Offshore and Borgestad
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eidesvik and Borgestad is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and Borgestad A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borgestad A 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 Borgestad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borgestad A has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and Borgestad go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and Borgestad
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 0.96 times more return on investment than Borgestad. However, Eidesvik Offshore ASA is 1.05 times less risky than Borgestad. It trades about -0.07 of its potential returns per unit of risk. Borgestad A is currently generating about -0.22 per unit of risk. If you would invest 1,380 in Eidesvik Offshore ASA on November 3, 2024 and sell it today you would lose (44.00) from holding Eidesvik Offshore ASA or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. Borgestad A
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| Borgestad A |
Eidesvik Offshore and Borgestad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and Borgestad
The main advantage of trading using opposite Eidesvik Offshore and Borgestad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, Borgestad 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 Borgestad will offset losses from the drop in Borgestad's long position.| Eidesvik Offshore vs. Solstad Offsho | Eidesvik Offshore vs. Havila Shipping ASA | Eidesvik Offshore vs. Prosafe SE | Eidesvik Offshore vs. BW Offshore |
| Borgestad vs. Goodtech | Borgestad vs. Havila Shipping ASA | Borgestad vs. Eidesvik Offshore ASA | Borgestad vs. Byggma |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |