Correlation Between Hong Kong and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Hong Kong and Solstad 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 Hong Kong and Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hong Kong Land and Solstad Offshore ASA, you can compare the effects of market volatilities on Hong Kong and Solstad 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 Hong Kong with a short position of Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Solstad Offshore.
Diversification Opportunities for Hong Kong and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA and Hong Kong 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 Hong Kong Land are associated (or correlated) with Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Hong Kong i.e., Hong Kong and Solstad Offshore go up and down completely randomly.
Pair Corralation between Hong Kong and Solstad Offshore
If you would invest 3,254 in Solstad Offshore ASA on September 13, 2024 and sell it today you would earn a total of 668.00 from holding Solstad Offshore ASA or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hong Kong Land vs. Solstad Offshore ASA
Performance |
| Timeline |
| Hong Kong Land |
| Solstad Offshore ASA |
Hong Kong and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Solstad Offshore
The main advantage of trading using opposite Hong Kong and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, Solstad 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
| Solstad Offshore vs. Take Two Interactive Software | Solstad Offshore vs. METALL ZUG AG | Solstad Offshore vs. Ross Stores | Solstad Offshore vs. Pfeiffer Vacuum Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |