Correlation Between OAKTRSPECLENDNEW and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and EIDESVIK OFFSHORE 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 OAKTRSPECLENDNEW and EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and EIDESVIK OFFSHORE 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 OAKTRSPECLENDNEW with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and EIDESVIK OFFSHORE.
Diversification Opportunities for OAKTRSPECLENDNEW and EIDESVIK OFFSHORE
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OAKTRSPECLENDNEW and EIDESVIK is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW are associated (or correlated) with EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between OAKTRSPECLENDNEW and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to under-perform the EIDESVIK OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, OAKTRSPECLENDNEW is 2.08 times less risky than EIDESVIK OFFSHORE. The stock trades about -0.07 of its potential returns per unit of risk. The EIDESVIK OFFSHORE NK is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 113.00 in EIDESVIK OFFSHORE NK on November 18, 2024 and sell it today you would lose (1.00) from holding EIDESVIK OFFSHORE NK or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OAKTRSPECLENDNEW vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| OAKTRSPECLENDNEW |
| EIDESVIK OFFSHORE |
OAKTRSPECLENDNEW and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OAKTRSPECLENDNEW and EIDESVIK OFFSHORE
The main advantage of trading using opposite OAKTRSPECLENDNEW and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| OAKTRSPECLENDNEW vs. Air Transport Services | OAKTRSPECLENDNEW vs. CanSino Biologics | OAKTRSPECLENDNEW vs. Transport International Holdings | OAKTRSPECLENDNEW vs. SCANSOURCE |
| EIDESVIK OFFSHORE vs. Vienna Insurance Group | EIDESVIK OFFSHORE vs. United Insurance Holdings | EIDESVIK OFFSHORE vs. Direct Line Insurance | EIDESVIK OFFSHORE vs. Salesforce |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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