Correlation Between Solstad Offsho and Wilh Wilhelmsen
Can any of the company-specific risk be diversified away by investing in both Solstad Offsho and Wilh Wilhelmsen 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 Wilh Wilhelmsen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstad Offsho and Wilh Wilhelmsen Holding, you can compare the effects of market volatilities on Solstad Offsho and Wilh Wilhelmsen 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 Wilh Wilhelmsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offsho and Wilh Wilhelmsen.
Diversification Opportunities for Solstad Offsho and Wilh Wilhelmsen
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solstad and Wilh is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offsho and Wilh Wilhelmsen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilh Wilhelmsen Holding 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 Wilh Wilhelmsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilh Wilhelmsen Holding has no effect on the direction of Solstad Offsho i.e., Solstad Offsho and Wilh Wilhelmsen go up and down completely randomly.
Pair Corralation between Solstad Offsho and Wilh Wilhelmsen
Assuming the 90 days trading horizon Solstad Offsho is expected to generate 2.81 times more return on investment than Wilh Wilhelmsen. However, Solstad Offsho is 2.81 times more volatile than Wilh Wilhelmsen Holding. It trades about 0.23 of its potential returns per unit of risk. Wilh Wilhelmsen Holding is currently generating about 0.05 per unit of risk. If you would invest 3,336 in Solstad Offsho on September 1, 2024 and sell it today you would earn a total of 858.00 from holding Solstad Offsho or generate 25.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Solstad Offsho vs. Wilh Wilhelmsen Holding
Performance |
| Timeline |
| Solstad Offsho |
| Wilh Wilhelmsen Holding |
Solstad Offsho and Wilh Wilhelmsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offsho and Wilh Wilhelmsen
The main advantage of trading using opposite Solstad Offsho and Wilh Wilhelmsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offsho position performs unexpectedly, Wilh Wilhelmsen 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 Wilh Wilhelmsen will offset losses from the drop in Wilh Wilhelmsen's long position.| Solstad Offsho vs. Havila Shipping ASA | Solstad Offsho vs. Prosafe SE | Solstad Offsho vs. Eidesvik Offshore ASA |
| Wilh Wilhelmsen vs. Wilh Wilhelmsen Holding | Wilh Wilhelmsen vs. Stolt Nielsen Limited | Wilh Wilhelmsen vs. Veidekke ASA | Wilh Wilhelmsen vs. Odfjell SE |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |