Correlation Between SBM Offshore and Nascent Wine
Can any of the company-specific risk be diversified away by investing in both SBM Offshore and Nascent Wine 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 Nascent Wine 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 Nascent Wine, you can compare the effects of market volatilities on SBM Offshore and Nascent Wine 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 Nascent Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and Nascent Wine.
Diversification Opportunities for SBM Offshore and Nascent Wine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBM and Nascent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and Nascent Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nascent Wine 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 Nascent Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nascent Wine has no effect on the direction of SBM Offshore i.e., SBM Offshore and Nascent Wine go up and down completely randomly.
Pair Corralation between SBM Offshore and Nascent Wine
If you would invest 1,836 in SBM Offshore NV on September 1, 2024 and sell it today you would earn a total of 44.00 from holding SBM Offshore NV or generate 2.4% 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. Nascent Wine
Performance |
| Timeline |
| SBM Offshore NV |
| Nascent Wine |
SBM Offshore and Nascent Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and Nascent Wine
The main advantage of trading using opposite SBM Offshore and Nascent Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, Nascent Wine 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 Nascent Wine will offset losses from the drop in Nascent Wine's long position.| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
| Nascent Wine vs. Ingles Markets Incorporated | Nascent Wine vs. Grocery Outlet Holding | Nascent Wine vs. Ocado Group plc | Nascent Wine vs. Sprouts Farmers Market |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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