Correlation Between Solstad Offshore and BAXTER
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By analyzing existing cross correlation between Solstad Offshore ASA and BAXTER INTL INC, you can compare the effects of market volatilities on Solstad Offshore and BAXTER 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 Solstad Offshore with a short position of BAXTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and BAXTER.
Diversification Opportunities for Solstad Offshore and BAXTER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solstad and BAXTER is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and BAXTER INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAXTER INTL INC and Solstad 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 Solstad Offshore ASA are associated (or correlated) with BAXTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAXTER INTL INC has no effect on the direction of Solstad Offshore i.e., Solstad Offshore and BAXTER go up and down completely randomly.
Pair Corralation between Solstad Offshore and BAXTER
If you would invest 309.00 in Solstad Offshore ASA on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Solstad Offshore ASA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Solstad Offshore ASA vs. BAXTER INTL INC
Performance |
| Timeline |
| Solstad Offshore ASA |
| BAXTER INTL INC |
Solstad Offshore and BAXTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and BAXTER
The main advantage of trading using opposite Solstad Offshore and BAXTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore position performs unexpectedly, BAXTER 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 BAXTER will offset losses from the drop in BAXTER's long position.The idea behind Solstad Offshore ASA and BAXTER INTL INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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