Correlation Between FAST RETAIL and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both FAST RETAIL 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 FAST RETAIL and EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAIL ADR and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on FAST RETAIL 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 FAST RETAIL with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAIL and EIDESVIK OFFSHORE.
Diversification Opportunities for FAST RETAIL and EIDESVIK OFFSHORE
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between FAST and EIDESVIK is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAIL ADR and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE and FAST RETAIL 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 FAST RETAIL ADR 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 FAST RETAIL i.e., FAST RETAIL and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between FAST RETAIL and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon FAST RETAIL ADR is expected to under-perform the EIDESVIK OFFSHORE. In addition to that, FAST RETAIL is 1.08 times more volatile than EIDESVIK OFFSHORE NK. It trades about -0.16 of its total potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about 0.06 per unit of volatility. If you would invest 110.00 in EIDESVIK OFFSHORE NK on November 2, 2024 and sell it today you would earn a total of 2.00 from holding EIDESVIK OFFSHORE NK or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAST RETAIL ADR vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| FAST RETAIL ADR |
| EIDESVIK OFFSHORE |
FAST RETAIL and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAST RETAIL and EIDESVIK OFFSHORE
The main advantage of trading using opposite FAST RETAIL and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAIL 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.| FAST RETAIL vs. CompuGroup Medical SE | FAST RETAIL vs. MeVis Medical Solutions | FAST RETAIL vs. Siamgas And Petrochemicals | FAST RETAIL vs. SOCKET MOBILE NEW |
| EIDESVIK OFFSHORE vs. Wayside Technology Group | EIDESVIK OFFSHORE vs. DXC Technology Co | EIDESVIK OFFSHORE vs. Easy Software AG | EIDESVIK OFFSHORE vs. Ribbon Communications |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |