Correlation Between GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE.
Diversification Opportunities for GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRENKELEASING and EIDESVIK is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE and GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf i.e., GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to under-perform the EIDESVIK OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, GRENKELEASING Dusseldorf is 1.33 times less risky than EIDESVIK OFFSHORE. The stock trades about -0.02 of its potential returns per unit of risk. The EIDESVIK OFFSHORE NK is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 84.00 in EIDESVIK OFFSHORE NK on October 25, 2024 and sell it today you would earn a total of 26.00 from holding EIDESVIK OFFSHORE NK or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| GRENKELEASING Dusseldorf |
| EIDESVIK OFFSHORE |
GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE
The main advantage of trading using opposite GRENKELEASING Dusseldorf and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING Dusseldorf 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.| GRENKELEASING Dusseldorf vs. THAI BEVERAGE | GRENKELEASING Dusseldorf vs. ON SEMICONDUCTOR | GRENKELEASING Dusseldorf vs. High Liner Foods | GRENKELEASING Dusseldorf vs. Tyson Foods |
| EIDESVIK OFFSHORE vs. MAANSHAN IRON H | EIDESVIK OFFSHORE vs. Olympic Steel | EIDESVIK OFFSHORE vs. TROPHY GAMES DEV | EIDESVIK OFFSHORE vs. QINGCI GAMES INC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |