Correlation Between SBM Offshore and Hutter Schrantz
Can any of the company-specific risk be diversified away by investing in both SBM Offshore and Hutter Schrantz 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 Hutter Schrantz 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 Hutter Schrantz AG, you can compare the effects of market volatilities on SBM Offshore and Hutter Schrantz 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 Hutter Schrantz. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and Hutter Schrantz.
Diversification Opportunities for SBM Offshore and Hutter Schrantz
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBM and Hutter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and Hutter Schrantz AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hutter Schrantz AG 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 Hutter Schrantz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hutter Schrantz AG has no effect on the direction of SBM Offshore i.e., SBM Offshore and Hutter Schrantz go up and down completely randomly.
Pair Corralation between SBM Offshore and Hutter Schrantz
If you would invest (100.00) in Hutter Schrantz AG on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Hutter Schrantz AG or generate -100.0% 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. Hutter Schrantz AG
Performance |
| Timeline |
| SBM Offshore NV |
| Hutter Schrantz AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SBM Offshore and Hutter Schrantz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and Hutter Schrantz
The main advantage of trading using opposite SBM Offshore and Hutter Schrantz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, Hutter Schrantz 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 Hutter Schrantz will offset losses from the drop in Hutter Schrantz's long position.| SBM Offshore vs. Addiko Bank AG | SBM Offshore vs. BKS Bank AG | SBM Offshore vs. Wiener Privatbank SE | SBM Offshore vs. AMAG Austria Metall |
| Hutter Schrantz vs. AMAG Austria Metall | Hutter Schrantz vs. Erste Group Bank | Hutter Schrantz vs. Oberbank AG | Hutter Schrantz vs. Vienna Insurance Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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