Correlation Between SD Standard and Oslo Exchange
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By analyzing existing cross correlation between SD Standard Drilling and Oslo Exchange Mutual, you can compare the effects of market volatilities on SD Standard and Oslo Exchange 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 SD Standard with a short position of Oslo Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of SD Standard and Oslo Exchange.
Diversification Opportunities for SD Standard and Oslo Exchange
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SDSD and Oslo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SD Standard Drilling and Oslo Exchange Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oslo Exchange Mutual and SD Standard 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 SD Standard Drilling are associated (or correlated) with Oslo Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oslo Exchange Mutual has no effect on the direction of SD Standard i.e., SD Standard and Oslo Exchange go up and down completely randomly.
Pair Corralation between SD Standard and Oslo Exchange
Assuming the 90 days trading horizon SD Standard Drilling is expected to generate 0.82 times more return on investment than Oslo Exchange. However, SD Standard Drilling is 1.23 times less risky than Oslo Exchange. It trades about 0.1 of its potential returns per unit of risk. Oslo Exchange Mutual is currently generating about 0.01 per unit of risk. If you would invest 169.00 in SD Standard Drilling on August 29, 2024 and sell it today you would earn a total of 2.00 from holding SD Standard Drilling or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SD Standard Drilling vs. Oslo Exchange Mutual
Performance |
| Timeline |
SD Standard and Oslo Exchange Volatility Contrast
Predicted Return Density |
| Returns |
SD Standard Drilling
Pair trading matchups for SD Standard
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
Pair Trading with SD Standard and Oslo Exchange
The main advantage of trading using opposite SD Standard and Oslo Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SD Standard position performs unexpectedly, Oslo Exchange 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 Oslo Exchange will offset losses from the drop in Oslo Exchange's long position.| SD Standard vs. Odfjell Drilling | SD Standard vs. Solstad Offsho | SD Standard vs. Reach Subsea | SD Standard vs. Eidesvik Offshore ASA |
| Oslo Exchange vs. Lea Bank ASA | Oslo Exchange vs. Helgeland Sparebank | Oslo Exchange vs. Sunndal Sparebank | Oslo Exchange vs. Xplora Technologies As |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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