Correlation Between SBM Offshore and Creatd
Can any of the company-specific risk be diversified away by investing in both SBM Offshore and Creatd 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 Creatd 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 Creatd Inc, you can compare the effects of market volatilities on SBM Offshore and Creatd 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 Creatd. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and Creatd.
Diversification Opportunities for SBM Offshore and Creatd
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBM and Creatd is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and Creatd Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creatd Inc 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 Creatd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creatd Inc has no effect on the direction of SBM Offshore i.e., SBM Offshore and Creatd go up and down completely randomly.
Pair Corralation between SBM Offshore and Creatd
Assuming the 90 days horizon SBM Offshore NV is expected to generate 0.31 times more return on investment than Creatd. However, SBM Offshore NV is 3.26 times less risky than Creatd. It trades about 0.04 of its potential returns per unit of risk. Creatd Inc is currently generating about -0.08 per unit of risk. If you would invest 1,535 in SBM Offshore NV on September 1, 2024 and sell it today you would earn a total of 345.00 from holding SBM Offshore NV or generate 22.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 35.85% |
| Values | Daily Returns |
SBM Offshore NV vs. Creatd Inc
Performance |
| Timeline |
| SBM Offshore NV |
| Creatd Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SBM Offshore and Creatd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and Creatd
The main advantage of trading using opposite SBM Offshore and Creatd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, Creatd 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 Creatd will offset losses from the drop in Creatd'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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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