Correlation Between Solstad Offsho and Electromagnetic Geoservices
Can any of the company-specific risk be diversified away by investing in both Solstad Offsho and Electromagnetic Geoservices 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 Solstad Offsho and Electromagnetic Geoservices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstad Offsho and Electromagnetic Geoservices ASA, you can compare the effects of market volatilities on Solstad Offsho and Electromagnetic Geoservices 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 Offsho with a short position of Electromagnetic Geoservices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offsho and Electromagnetic Geoservices.
Diversification Opportunities for Solstad Offsho and Electromagnetic Geoservices
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Solstad and Electromagnetic is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offsho and Electromagnetic Geoservices AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromagnetic Geoservices and Solstad Offsho 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 Offsho are associated (or correlated) with Electromagnetic Geoservices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromagnetic Geoservices has no effect on the direction of Solstad Offsho i.e., Solstad Offsho and Electromagnetic Geoservices go up and down completely randomly.
Pair Corralation between Solstad Offsho and Electromagnetic Geoservices
If you would invest 3,084 in Solstad Offsho on September 13, 2024 and sell it today you would earn a total of 768.00 from holding Solstad Offsho or generate 24.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Solstad Offsho vs. Electromagnetic Geoservices AS
Performance |
| Timeline |
| Solstad Offsho |
| Electromagnetic Geoservices |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Solstad Offsho and Electromagnetic Geoservices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offsho and Electromagnetic Geoservices
The main advantage of trading using opposite Solstad Offsho and Electromagnetic Geoservices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offsho position performs unexpectedly, Electromagnetic Geoservices 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 Electromagnetic Geoservices will offset losses from the drop in Electromagnetic Geoservices' long position.| Solstad Offsho vs. Havila Shipping ASA | Solstad Offsho vs. Prosafe SE | Solstad Offsho vs. Eidesvik Offshore ASA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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