Correlation Between SBM Offshore and ONCOR
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By analyzing existing cross correlation between SBM Offshore NV and ONCOR ELEC DELIVERY, you can compare the effects of market volatilities on SBM Offshore and ONCOR 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 ONCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and ONCOR.
Diversification Opportunities for SBM Offshore and ONCOR
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBM and ONCOR is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and ONCOR ELEC DELIVERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONCOR ELEC DELIVERY 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 ONCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONCOR ELEC DELIVERY has no effect on the direction of SBM Offshore i.e., SBM Offshore and ONCOR go up and down completely randomly.
Pair Corralation between SBM Offshore and ONCOR
Assuming the 90 days horizon SBM Offshore NV is expected to under-perform the ONCOR. In addition to that, SBM Offshore is 1.26 times more volatile than ONCOR ELEC DELIVERY. It trades about -0.05 of its total potential returns per unit of risk. ONCOR ELEC DELIVERY is currently generating about 0.12 per unit of volatility. If you would invest 8,551 in ONCOR ELEC DELIVERY on September 12, 2024 and sell it today you would earn a total of 540.00 from holding ONCOR ELEC DELIVERY or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
SBM Offshore NV vs. ONCOR ELEC DELIVERY
Performance |
| Timeline |
| SBM Offshore NV |
| ONCOR ELEC DELIVERY |
SBM Offshore and ONCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and ONCOR
The main advantage of trading using opposite SBM Offshore and ONCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, ONCOR 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 ONCOR will offset losses from the drop in ONCOR's long position.| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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