Correlation Between SBM Offshore and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both SBM Offshore and Mapletree Logistics 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 Mapletree Logistics 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 Mapletree Logistics Trust, you can compare the effects of market volatilities on SBM Offshore and Mapletree Logistics 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 Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and Mapletree Logistics.
Diversification Opportunities for SBM Offshore and Mapletree Logistics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBM and Mapletree is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust 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 Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of SBM Offshore i.e., SBM Offshore and Mapletree Logistics go up and down completely randomly.
Pair Corralation between SBM Offshore and Mapletree Logistics
Assuming the 90 days horizon SBM Offshore NV is expected to under-perform the Mapletree Logistics. In addition to that, SBM Offshore is 2.02 times more volatile than Mapletree Logistics Trust. It trades about -0.24 of its total potential returns per unit of risk. Mapletree Logistics Trust is currently generating about -0.35 per unit of volatility. If you would invest 101.00 in Mapletree Logistics Trust on September 13, 2024 and sell it today you would lose (8.00) from holding Mapletree Logistics Trust or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBM Offshore NV vs. Mapletree Logistics Trust
Performance |
| Timeline |
| SBM Offshore NV |
| Mapletree Logistics Trust |
SBM Offshore and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and Mapletree Logistics
The main advantage of trading using opposite SBM Offshore and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| SBM Offshore vs. Worley Parsons | SBM Offshore vs. Saipem SpA | SBM Offshore vs. SMG Industries | SBM Offshore vs. Aquagold International |
| Mapletree Logistics vs. Biglari Holdings | Mapletree Logistics vs. The Cheesecake Factory | Mapletree Logistics vs. Dennys Corp | Mapletree Logistics vs. Playa Hotels Resorts |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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