Correlation Between SBM Offshore and In Ovations
Can any of the company-specific risk be diversified away by investing in both SBM Offshore and In Ovations 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 SBM Offshore and In Ovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBM Offshore NV and In Ovations Hldgs, you can compare the effects of market volatilities on SBM Offshore and In Ovations 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 SBM Offshore with a short position of In Ovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and In Ovations.
Diversification Opportunities for SBM Offshore and In Ovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBM and INOH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and In Ovations Hldgs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on In Ovations Hldgs and SBM Offshore 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 SBM Offshore NV are associated (or correlated) with In Ovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of In Ovations Hldgs has no effect on the direction of SBM Offshore i.e., SBM Offshore and In Ovations go up and down completely randomly.
Pair Corralation between SBM Offshore and In Ovations
If you would invest 1,801 in SBM Offshore NV on September 3, 2024 and sell it today you would earn a total of 79.00 from holding SBM Offshore NV or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBM Offshore NV vs. In Ovations Hldgs
Performance |
| Timeline |
| SBM Offshore NV |
| In Ovations Hldgs |
SBM Offshore and In Ovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and In Ovations
The main advantage of trading using opposite SBM Offshore and In Ovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, In Ovations 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 In Ovations will offset losses from the drop in In Ovations' long position.| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
| In Ovations vs. Uber Technologies | In Ovations vs. ServiceNow | In Ovations vs. Apogee Therapeutics, Common | In Ovations vs. Inhibrx |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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