Correlation Between Performance Food and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Performance Food and EIDESVIK 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 Performance Food and EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Food Group and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on Performance Food and EIDESVIK 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 Performance Food with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and EIDESVIK OFFSHORE.
Diversification Opportunities for Performance Food and EIDESVIK OFFSHORE
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Performance and EIDESVIK is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE and Performance Food 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 Performance Food Group are associated (or correlated) with EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of Performance Food i.e., Performance Food and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between Performance Food and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon Performance Food Group is expected to generate 1.1 times more return on investment than EIDESVIK OFFSHORE. However, Performance Food is 1.1 times more volatile than EIDESVIK OFFSHORE NK. It trades about 0.3 of its potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about 0.04 per unit of risk. If you would invest 7,550 in Performance Food Group on August 27, 2024 and sell it today you would earn a total of 800.00 from holding Performance Food Group or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Food Group vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| Performance Food |
| EIDESVIK OFFSHORE |
Performance Food and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Food and EIDESVIK OFFSHORE
The main advantage of trading using opposite Performance Food and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food position performs unexpectedly, EIDESVIK 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc |
| EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |