Correlation Between Eidesvik Offshore and Endur ASA
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and Endur ASA 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 Endur ASA 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 Endur ASA, you can compare the effects of market volatilities on Eidesvik Offshore and Endur ASA 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 Endur ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and Endur ASA.
Diversification Opportunities for Eidesvik Offshore and Endur ASA
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eidesvik and Endur is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and Endur ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endur 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 Endur ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endur ASA has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and Endur ASA go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and Endur ASA
Assuming the 90 days trading horizon Eidesvik Offshore is expected to generate 21.76 times less return on investment than Endur ASA. In addition to that, Eidesvik Offshore is 1.03 times more volatile than Endur ASA. It trades about 0.0 of its total potential returns per unit of risk. Endur ASA is currently generating about 0.09 per unit of volatility. If you would invest 3,950 in Endur ASA on August 25, 2024 and sell it today you would earn a total of 2,300 from holding Endur ASA or generate 58.23% 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. Endur ASA
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| Endur ASA |
Eidesvik Offshore and Endur ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and Endur ASA
The main advantage of trading using opposite Eidesvik Offshore and Endur ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, Endur ASA 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 Endur ASA will offset losses from the drop in Endur ASA's long position.| Eidesvik Offshore vs. Solstad Offsho | Eidesvik Offshore vs. Havila Shipping ASA | Eidesvik Offshore vs. Prosafe SE | Eidesvik Offshore vs. BW Offshore |
| Endur ASA vs. Magnora ASA | Endur ASA vs. Next Biometrics Group | Endur ASA vs. Idex ASA | Endur ASA vs. Eidesvik Offshore ASA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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