Correlation Between Marine Products and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Marine Products 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 Marine Products and Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Solstad Offshore ASA, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Solstad Offshore.
Diversification Opportunities for Marine Products and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marine and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products 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 Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and Solstad Offshore go up and down completely randomly.
Pair Corralation between Marine Products and Solstad Offshore
If you would invest 930.00 in Marine Products on September 4, 2024 and sell it today you would earn a total of 50.00 from holding Marine Products or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Marine Products vs. Solstad Offshore ASA
Performance |
| Timeline |
| Marine Products |
| Solstad Offshore ASA |
Marine Products and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Solstad Offshore
The main advantage of trading using opposite Marine Products and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. EZGO Technologies | Marine Products vs. Polaris Industries |
| Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. COSCO SHIPPING Holdings | Solstad Offshore vs. Orient Overseas Limited |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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