Correlation Between Integrated Wind and Dolphin Drilling
Can any of the company-specific risk be diversified away by investing in both Integrated Wind and Dolphin Drilling 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 Integrated Wind and Dolphin Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Wind Solutions and Dolphin Drilling AS, you can compare the effects of market volatilities on Integrated Wind and Dolphin Drilling 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 Integrated Wind with a short position of Dolphin Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Wind and Dolphin Drilling.
Diversification Opportunities for Integrated Wind and Dolphin Drilling
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Integrated and Dolphin is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Wind Solutions and Dolphin Drilling AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Drilling and Integrated Wind 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 Integrated Wind Solutions are associated (or correlated) with Dolphin Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Drilling has no effect on the direction of Integrated Wind i.e., Integrated Wind and Dolphin Drilling go up and down completely randomly.
Pair Corralation between Integrated Wind and Dolphin Drilling
Assuming the 90 days trading horizon Integrated Wind Solutions is expected to generate 1.0 times more return on investment than Dolphin Drilling. However, Integrated Wind is 1.0 times more volatile than Dolphin Drilling AS. It trades about 0.04 of its potential returns per unit of risk. Dolphin Drilling AS is currently generating about -0.07 per unit of risk. If you would invest 3,120 in Integrated Wind Solutions on September 12, 2024 and sell it today you would earn a total of 1,480 from holding Integrated Wind Solutions or generate 47.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Wind Solutions vs. Dolphin Drilling AS
Performance |
| Timeline |
| Integrated Wind Solutions |
| Dolphin Drilling |
Integrated Wind and Dolphin Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Wind and Dolphin Drilling
The main advantage of trading using opposite Integrated Wind and Dolphin Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Wind position performs unexpectedly, Dolphin Drilling 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 Dolphin Drilling will offset losses from the drop in Dolphin Drilling's long position.| Integrated Wind vs. Edda Wind ASA | Integrated Wind vs. Cloudberry Clean Energy | Integrated Wind vs. Cadeler As | Integrated Wind vs. Otovo AS |
| Dolphin Drilling vs. Odfjell Drilling | Dolphin Drilling vs. NorAm Drilling AS | Dolphin Drilling vs. SD Standard Drilling | Dolphin Drilling vs. Kongsberg Gruppen ASA |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position 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 | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |