Correlation Between SBM Offshore and Ottakringer Getrnke
Can any of the company-specific risk be diversified away by investing in both SBM Offshore and Ottakringer Getrnke 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 Ottakringer Getrnke 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 Ottakringer Getrnke AG, you can compare the effects of market volatilities on SBM Offshore and Ottakringer Getrnke 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 Ottakringer Getrnke. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and Ottakringer Getrnke.
Diversification Opportunities for SBM Offshore and Ottakringer Getrnke
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBM and Ottakringer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and Ottakringer Getrnke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ottakringer Getrnke 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 Ottakringer Getrnke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ottakringer Getrnke has no effect on the direction of SBM Offshore i.e., SBM Offshore and Ottakringer Getrnke go up and down completely randomly.
Pair Corralation between SBM Offshore and Ottakringer Getrnke
If you would invest 1,275 in SBM Offshore NV on August 27, 2024 and sell it today you would earn a total of 503.00 from holding SBM Offshore NV or generate 39.45% 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. Ottakringer Getrnke AG
Performance |
| Timeline |
| SBM Offshore NV |
| Ottakringer Getrnke |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SBM Offshore and Ottakringer Getrnke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and Ottakringer Getrnke
The main advantage of trading using opposite SBM Offshore and Ottakringer Getrnke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, Ottakringer Getrnke 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 Ottakringer Getrnke will offset losses from the drop in Ottakringer Getrnke's long position.| SBM Offshore vs. Semperit Aktiengesellschaft Holding | SBM Offshore vs. Oesterr Post AG | SBM Offshore vs. Voestalpine AG | SBM Offshore vs. Universal Music Group |
| Ottakringer Getrnke vs. Wiener Privatbank SE | Ottakringer Getrnke vs. Vienna Insurance Group | Ottakringer Getrnke vs. AMAG Austria Metall | Ottakringer Getrnke vs. Addiko Bank AG |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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