Correlation Between SBM Offshore and EDPPL
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By analyzing existing cross correlation between SBM Offshore NV and EDPPL 171 24 JAN 28, you can compare the effects of market volatilities on SBM Offshore and EDPPL 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 EDPPL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and EDPPL.
Diversification Opportunities for SBM Offshore and EDPPL
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBM and EDPPL is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and EDPPL 171 24 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDPPL 171 24 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 EDPPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDPPL 171 24 has no effect on the direction of SBM Offshore i.e., SBM Offshore and EDPPL go up and down completely randomly.
Pair Corralation between SBM Offshore and EDPPL
Assuming the 90 days horizon SBM Offshore NV is expected to generate 0.39 times more return on investment than EDPPL. However, SBM Offshore NV is 2.55 times less risky than EDPPL. It trades about 0.14 of its potential returns per unit of risk. EDPPL 171 24 JAN 28 is currently generating about -0.25 per unit of risk. If you would invest 1,836 in SBM Offshore NV on September 5, 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
SBM Offshore NV vs. EDPPL 171 24 JAN 28
Performance |
| Timeline |
| SBM Offshore NV |
| EDPPL 171 24 |
SBM Offshore and EDPPL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and EDPPL
The main advantage of trading using opposite SBM Offshore and EDPPL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, EDPPL 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 EDPPL will offset losses from the drop in EDPPL's long position.| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
| EDPPL vs. Minerals Technologies | EDPPL vs. Juniata Valley Financial | EDPPL vs. Barings BDC | EDPPL vs. AmTrust Financial Services |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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