Correlation Between Odfjell Technology and Proximar Seafood
Can any of the company-specific risk be diversified away by investing in both Odfjell Technology and Proximar Seafood 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 Odfjell Technology and Proximar Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odfjell Technology and Proximar Seafood AS, you can compare the effects of market volatilities on Odfjell Technology and Proximar Seafood 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 Odfjell Technology with a short position of Proximar Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odfjell Technology and Proximar Seafood.
Diversification Opportunities for Odfjell Technology and Proximar Seafood
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Odfjell and Proximar is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Odfjell Technology and Proximar Seafood AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximar Seafood and Odfjell Technology 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 Odfjell Technology are associated (or correlated) with Proximar Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximar Seafood has no effect on the direction of Odfjell Technology i.e., Odfjell Technology and Proximar Seafood go up and down completely randomly.
Pair Corralation between Odfjell Technology and Proximar Seafood
Assuming the 90 days trading horizon Odfjell Technology is expected to generate 1.09 times less return on investment than Proximar Seafood. But when comparing it to its historical volatility, Odfjell Technology is 1.32 times less risky than Proximar Seafood. It trades about 0.02 of its potential returns per unit of risk. Proximar Seafood AS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Proximar Seafood AS on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Proximar Seafood AS or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Odfjell Technology vs. Proximar Seafood AS
Performance |
| Timeline |
| Odfjell Technology |
| Proximar Seafood |
Odfjell Technology and Proximar Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odfjell Technology and Proximar Seafood
The main advantage of trading using opposite Odfjell Technology and Proximar Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odfjell Technology position performs unexpectedly, Proximar Seafood 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 Proximar Seafood will offset losses from the drop in Proximar Seafood's long position.| Odfjell Technology vs. Borr Drilling | Odfjell Technology vs. Odfjell Drilling | Odfjell Technology vs. Shelf Drilling | Odfjell Technology vs. Northern Ocean |
| Proximar Seafood vs. Pareto Bank ASA | Proximar Seafood vs. Nordic Technology Group | Proximar Seafood vs. Romerike Sparebank | Proximar Seafood vs. Morrow Bank 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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