Correlation Between PACCAR and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both PACCAR 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 PACCAR and Eidesvik Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PACCAR Inc and Eidesvik Offshore ASA, you can compare the effects of market volatilities on PACCAR 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 PACCAR with a short position of Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACCAR and Eidesvik Offshore.
Diversification Opportunities for PACCAR and Eidesvik Offshore
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PACCAR and Eidesvik is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding PACCAR Inc and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA and PACCAR 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 PACCAR Inc 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 ASA has no effect on the direction of PACCAR i.e., PACCAR and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between PACCAR and Eidesvik Offshore
Assuming the 90 days horizon PACCAR Inc is expected to under-perform the Eidesvik Offshore. But the stock apears to be less risky and, when comparing its historical volatility, PACCAR Inc is 2.4 times less risky than Eidesvik Offshore. The stock trades about 0.0 of its potential returns per unit of risk. The Eidesvik Offshore ASA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 111.00 in Eidesvik Offshore ASA on October 16, 2024 and sell it today you would earn a total of 2.00 from holding Eidesvik Offshore ASA or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
PACCAR Inc vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| PACCAR Inc |
| Eidesvik Offshore ASA |
PACCAR and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACCAR and Eidesvik Offshore
The main advantage of trading using opposite PACCAR and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACCAR 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.| PACCAR vs. PT Wintermar Offshore | PACCAR vs. Gaming and Leisure | PACCAR vs. EIDESVIK OFFSHORE NK | PACCAR vs. Geely Automobile Holdings |
| Eidesvik Offshore vs. PLAYTIKA HOLDING DL 01 | Eidesvik Offshore vs. ELMOS SEMICONDUCTOR | Eidesvik Offshore vs. MagnaChip Semiconductor Corp | Eidesvik Offshore vs. PLAYMATES TOYS |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |