Correlation Between Oslo Exchange and Subsea 7
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By analyzing existing cross correlation between Oslo Exchange Mutual and Subsea 7 SA, you can compare the effects of market volatilities on Oslo Exchange and Subsea 7 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 Subsea 7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oslo Exchange and Subsea 7.
Diversification Opportunities for Oslo Exchange and Subsea 7
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oslo and Subsea is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Oslo Exchange Mutual and Subsea 7 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Subsea 7 SA 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 Subsea 7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Subsea 7 SA has no effect on the direction of Oslo Exchange i.e., Oslo Exchange and Subsea 7 go up and down completely randomly.
Pair Corralation between Oslo Exchange and Subsea 7
Assuming the 90 days trading horizon Oslo Exchange is expected to generate 1.74 times less return on investment than Subsea 7. But when comparing it to its historical volatility, Oslo Exchange Mutual is 2.28 times less risky than Subsea 7. It trades about 0.08 of its potential returns per unit of risk. Subsea 7 SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 13,110 in Subsea 7 SA on August 28, 2024 and sell it today you would earn a total of 5,050 from holding Subsea 7 SA or generate 38.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oslo Exchange Mutual vs. Subsea 7 SA
Performance |
| Timeline |
Oslo Exchange and Subsea 7 Volatility Contrast
Predicted Return Density |
| Returns |
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Subsea 7 SA
Pair trading matchups for Subsea 7
Pair Trading with Oslo Exchange and Subsea 7
The main advantage of trading using opposite Oslo Exchange and Subsea 7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oslo Exchange position performs unexpectedly, Subsea 7 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 Subsea 7 will offset losses from the drop in Subsea 7's long position.| Oslo Exchange vs. Lea Bank ASA | Oslo Exchange vs. Helgeland Sparebank | Oslo Exchange vs. Sunndal Sparebank | Oslo Exchange vs. Xplora Technologies As |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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