Correlation Between SBM OFFSHORE and PERSOL HOLDINGS
Can any of the company-specific risk be diversified away by investing in both SBM OFFSHORE and PERSOL HOLDINGS 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 SBM OFFSHORE and PERSOL HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBM OFFSHORE and PERSOL HOLDINGS LTD, you can compare the effects of market volatilities on SBM OFFSHORE and PERSOL HOLDINGS 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 SBM OFFSHORE with a short position of PERSOL HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM OFFSHORE and PERSOL HOLDINGS.
Diversification Opportunities for SBM OFFSHORE and PERSOL HOLDINGS
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SBM and PERSOL is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding SBM OFFSHORE and PERSOL HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERSOL HOLDINGS LTD and SBM 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 SBM OFFSHORE are associated (or correlated) with PERSOL HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERSOL HOLDINGS LTD has no effect on the direction of SBM OFFSHORE i.e., SBM OFFSHORE and PERSOL HOLDINGS go up and down completely randomly.
Pair Corralation between SBM OFFSHORE and PERSOL HOLDINGS
Assuming the 90 days trading horizon SBM OFFSHORE is expected to generate 1.14 times more return on investment than PERSOL HOLDINGS. However, SBM OFFSHORE is 1.14 times more volatile than PERSOL HOLDINGS LTD. It trades about 0.03 of its potential returns per unit of risk. PERSOL HOLDINGS LTD is currently generating about -0.16 per unit of risk. If you would invest 1,674 in SBM OFFSHORE on August 30, 2024 and sell it today you would earn a total of 15.00 from holding SBM OFFSHORE or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBM OFFSHORE vs. PERSOL HOLDINGS LTD
Performance |
| Timeline |
| SBM OFFSHORE |
| PERSOL HOLDINGS LTD |
SBM OFFSHORE and PERSOL HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM OFFSHORE and PERSOL HOLDINGS
The main advantage of trading using opposite SBM OFFSHORE and PERSOL HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM OFFSHORE position performs unexpectedly, PERSOL HOLDINGS 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 PERSOL HOLDINGS will offset losses from the drop in PERSOL HOLDINGS's long position.| SBM OFFSHORE vs. Apple Inc | SBM OFFSHORE vs. Apple Inc | SBM OFFSHORE vs. Superior Plus Corp | SBM OFFSHORE vs. SIVERS SEMICONDUCTORS AB |
| PERSOL HOLDINGS vs. Recruit Holdings Co | PERSOL HOLDINGS vs. Randstad NV | PERSOL HOLDINGS vs. TRINET GROUP INC | PERSOL HOLDINGS vs. TONGDAO LIEPGR DL 0001 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |