Correlation Between SBM Offshore and NIBC Holding
Can any of the company-specific risk be diversified away by investing in both SBM Offshore and NIBC 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 NIBC 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 NIBC Holding NV, you can compare the effects of market volatilities on SBM Offshore and NIBC 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 NIBC Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and NIBC Holding.
Diversification Opportunities for SBM Offshore and NIBC Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBM and NIBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and NIBC Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIBC 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 NIBC Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIBC Holding NV has no effect on the direction of SBM Offshore i.e., SBM Offshore and NIBC Holding go up and down completely randomly.
Pair Corralation between SBM Offshore and NIBC Holding
If you would invest 1,158 in SBM Offshore NV on August 26, 2024 and sell it today you would earn a total of 614.00 from holding SBM Offshore NV or generate 53.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SBM Offshore NV vs. NIBC Holding NV
Performance |
| Timeline |
| SBM Offshore NV |
| NIBC Holding NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SBM Offshore and NIBC Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and NIBC Holding
The main advantage of trading using opposite SBM Offshore and NIBC Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, NIBC 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 NIBC Holding will offset losses from the drop in NIBC Holding's long position.| SBM Offshore vs. Koninklijke Vopak NV | SBM Offshore vs. Randstad NV | SBM Offshore vs. Aalberts Industries NV | SBM Offshore vs. iShares SP 500 |
| NIBC Holding vs. Universal Music Group | NIBC Holding vs. SBM Offshore NV | NIBC Holding vs. Tetragon Financial Group | NIBC Holding vs. Accsys Technologies |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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