Correlation Between SBM Offshore and Bever Holding
Can any of the company-specific risk be diversified away by investing in both SBM Offshore and Bever Holding 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 Bever Holding 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 Bever Holding NV, you can compare the effects of market volatilities on SBM Offshore and Bever Holding 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 Bever Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and Bever Holding.
Diversification Opportunities for SBM Offshore and Bever Holding
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBM and Bever is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and Bever Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bever Holding NV 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 Bever Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bever Holding NV has no effect on the direction of SBM Offshore i.e., SBM Offshore and Bever Holding go up and down completely randomly.
Pair Corralation between SBM Offshore and Bever Holding
If you would invest 1,671 in SBM Offshore NV on August 30, 2024 and sell it today you would earn a total of 38.00 from holding SBM Offshore NV or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBM Offshore NV vs. Bever Holding NV
Performance |
| Timeline |
| SBM Offshore NV |
| Bever Holding NV |
SBM Offshore and Bever Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and Bever Holding
The main advantage of trading using opposite SBM Offshore and Bever Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, Bever Holding 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 Bever Holding will offset losses from the drop in Bever Holding's long position.| SBM Offshore vs. Fugro NV | SBM Offshore vs. Koninklijke Vopak NV | SBM Offshore vs. Randstad NV | SBM Offshore vs. Aalberts Industries NV |
| Bever Holding vs. Flow Traders BV | Bever Holding vs. Vastned Retail NV | Bever Holding vs. Sligro Food Group | Bever Holding vs. Reinet Investments SCA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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