Correlation Between Jutal Offshore and Euronav NV
Can any of the company-specific risk be diversified away by investing in both Jutal Offshore and Euronav NV 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 Jutal Offshore and Euronav NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jutal Offshore Oil and Euronav NV, you can compare the effects of market volatilities on Jutal Offshore and Euronav NV 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 Jutal Offshore with a short position of Euronav NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jutal Offshore and Euronav NV.
Diversification Opportunities for Jutal Offshore and Euronav NV
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jutal and Euronav is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jutal Offshore Oil and Euronav NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronav NV and Jutal 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 Jutal Offshore Oil are associated (or correlated) with Euronav NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronav NV has no effect on the direction of Jutal Offshore i.e., Jutal Offshore and Euronav NV go up and down completely randomly.
Pair Corralation between Jutal Offshore and Euronav NV
Assuming the 90 days horizon Jutal Offshore Oil is expected to generate 2.22 times more return on investment than Euronav NV. However, Jutal Offshore is 2.22 times more volatile than Euronav NV. It trades about 0.04 of its potential returns per unit of risk. Euronav NV is currently generating about -0.07 per unit of risk. If you would invest 1,558 in Jutal Offshore Oil on September 14, 2024 and sell it today you would earn a total of 347.00 from holding Jutal Offshore Oil or generate 22.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jutal Offshore Oil vs. Euronav NV
Performance |
| Timeline |
| Jutal Offshore Oil |
| Euronav NV |
Jutal Offshore and Euronav NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jutal Offshore and Euronav NV
The main advantage of trading using opposite Jutal Offshore and Euronav NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jutal Offshore position performs unexpectedly, Euronav NV 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 Euronav NV will offset losses from the drop in Euronav NV's long position.| Jutal Offshore vs. SNDL Inc | Jutal Offshore vs. Merit Medical Systems | Jutal Offshore vs. Amgen Inc | Jutal Offshore vs. Marfrig Global Foods |
| Euronav NV vs. Zhihu Inc ADR | Euronav NV vs. Jutal Offshore Oil | Euronav NV vs. FactSet Research Systems | Euronav NV vs. Cadence Design Systems |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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