Correlation Between Oslo Exchange and SeaBird Exploration
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By analyzing existing cross correlation between Oslo Exchange Mutual and SeaBird Exploration Plc, you can compare the effects of market volatilities on Oslo Exchange and SeaBird Exploration 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 Oslo Exchange with a short position of SeaBird Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oslo Exchange and SeaBird Exploration.
Diversification Opportunities for Oslo Exchange and SeaBird Exploration
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oslo and SeaBird is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Oslo Exchange Mutual and SeaBird Exploration Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeaBird Exploration Plc and Oslo Exchange 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 Oslo Exchange Mutual are associated (or correlated) with SeaBird Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeaBird Exploration Plc has no effect on the direction of Oslo Exchange i.e., Oslo Exchange and SeaBird Exploration go up and down completely randomly.
Pair Corralation between Oslo Exchange and SeaBird Exploration
Assuming the 90 days trading horizon Oslo Exchange is expected to generate 6.43 times less return on investment than SeaBird Exploration. But when comparing it to its historical volatility, Oslo Exchange Mutual is 2.09 times less risky than SeaBird Exploration. It trades about 0.04 of its potential returns per unit of risk. SeaBird Exploration Plc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 466.00 in SeaBird Exploration Plc on September 3, 2024 and sell it today you would earn a total of 110.00 from holding SeaBird Exploration Plc or generate 23.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oslo Exchange Mutual vs. SeaBird Exploration Plc
Performance |
| Timeline |
Oslo Exchange and SeaBird Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
SeaBird Exploration Plc
Pair trading matchups for SeaBird Exploration
Pair Trading with Oslo Exchange and SeaBird Exploration
The main advantage of trading using opposite Oslo Exchange and SeaBird Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oslo Exchange position performs unexpectedly, SeaBird Exploration 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 SeaBird Exploration will offset losses from the drop in SeaBird Exploration's long position.| Oslo Exchange vs. Austevoll Seafood ASA | Oslo Exchange vs. Grong Sparebank | Oslo Exchange vs. Aurskog Sparebank | Oslo Exchange vs. Sogn Sparebank |
| SeaBird Exploration vs. Electromagnetic Geoservices ASA | SeaBird Exploration vs. TGS NOPEC Geophysical | SeaBird Exploration vs. Solstad Offsho | SeaBird Exploration vs. Prosafe SE |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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