Correlation Between Sea1 Offshore and Xplora Technologies
Can any of the company-specific risk be diversified away by investing in both Sea1 Offshore and Xplora Technologies 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 Sea1 Offshore and Xplora Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea1 Offshore and Xplora Technologies As, you can compare the effects of market volatilities on Sea1 Offshore and Xplora Technologies 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 Sea1 Offshore with a short position of Xplora Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea1 Offshore and Xplora Technologies.
Diversification Opportunities for Sea1 Offshore and Xplora Technologies
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sea1 and Xplora is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sea1 Offshore and Xplora Technologies As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xplora Technologies and Sea1 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 Sea1 Offshore are associated (or correlated) with Xplora Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xplora Technologies has no effect on the direction of Sea1 Offshore i.e., Sea1 Offshore and Xplora Technologies go up and down completely randomly.
Pair Corralation between Sea1 Offshore and Xplora Technologies
Assuming the 90 days trading horizon Sea1 Offshore is expected to generate 1.36 times more return on investment than Xplora Technologies. However, Sea1 Offshore is 1.36 times more volatile than Xplora Technologies As. It trades about 0.07 of its potential returns per unit of risk. Xplora Technologies As is currently generating about 0.07 per unit of risk. If you would invest 2,280 in Sea1 Offshore on November 27, 2024 and sell it today you would earn a total of 80.00 from holding Sea1 Offshore or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sea1 Offshore vs. Xplora Technologies As
Performance |
| Timeline |
| Sea1 Offshore |
| Xplora Technologies |
Sea1 Offshore and Xplora Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea1 Offshore and Xplora Technologies
The main advantage of trading using opposite Sea1 Offshore and Xplora Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea1 Offshore position performs unexpectedly, Xplora Technologies 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 Xplora Technologies will offset losses from the drop in Xplora Technologies' long position.| Sea1 Offshore vs. Equinor ASA | Sea1 Offshore vs. DnB ASA | Sea1 Offshore vs. Aker BP ASA | Sea1 Offshore vs. Telenor ASA |
| Xplora Technologies vs. Airthings ASA | Xplora Technologies vs. Nordic Unmanned As | Xplora Technologies vs. Pexip Holding ASA | Xplora Technologies vs. Huddlestock Fintech 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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