Correlation Between Schlumberger and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both Schlumberger and Eidesvik Offshore 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 Schlumberger and Eidesvik Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schlumberger Limited and Eidesvik Offshore ASA, you can compare the effects of market volatilities on Schlumberger and Eidesvik Offshore 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 Schlumberger with a short position of Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schlumberger and Eidesvik Offshore.
Diversification Opportunities for Schlumberger and Eidesvik Offshore
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Schlumberger and Eidesvik is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Schlumberger Limited and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA and Schlumberger 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 Schlumberger Limited are associated (or correlated) with Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of Schlumberger i.e., Schlumberger and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between Schlumberger and Eidesvik Offshore
Assuming the 90 days horizon Schlumberger Limited is expected to under-perform the Eidesvik Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Schlumberger Limited is 1.35 times less risky than Eidesvik Offshore. The stock trades about -0.05 of its potential returns per unit of risk. The Eidesvik Offshore ASA is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 108.00 in Eidesvik Offshore ASA on October 13, 2024 and sell it today you would earn a total of 9.00 from holding Eidesvik Offshore ASA or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schlumberger Limited vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| Schlumberger Limited |
| Eidesvik Offshore ASA |
Schlumberger and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schlumberger and Eidesvik Offshore
The main advantage of trading using opposite Schlumberger and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schlumberger position performs unexpectedly, Eidesvik Offshore 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 Eidesvik Offshore will offset losses from the drop in Eidesvik Offshore's long position.| Schlumberger vs. ALGOMA STEEL GROUP | Schlumberger vs. DENTSPLY SIRONA | Schlumberger vs. Tianjin Capital Environmental | Schlumberger vs. Advanced Medical Solutions |
| Eidesvik Offshore vs. SINGAPORE AIRLINES | Eidesvik Offshore vs. Tsingtao Brewery | Eidesvik Offshore vs. China Eastern Airlines | Eidesvik Offshore vs. Fevertree Drinks PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |