Correlation Between SOLSTAD OFFSHORE and Nib Holdings
Can any of the company-specific risk be diversified away by investing in both SOLSTAD OFFSHORE and Nib Holdings 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 OFFSHORE and Nib Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOLSTAD OFFSHORE NK and nib holdings limited, you can compare the effects of market volatilities on SOLSTAD OFFSHORE and Nib Holdings 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 Nib Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOLSTAD OFFSHORE and Nib Holdings.
Diversification Opportunities for SOLSTAD OFFSHORE and Nib Holdings
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SOLSTAD and Nib is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SOLSTAD OFFSHORE NK and nib holdings limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nib holdings limited 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 NK are associated (or correlated) with Nib Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nib holdings limited has no effect on the direction of SOLSTAD OFFSHORE i.e., SOLSTAD OFFSHORE and Nib Holdings go up and down completely randomly.
Pair Corralation between SOLSTAD OFFSHORE and Nib Holdings
Assuming the 90 days horizon SOLSTAD OFFSHORE is expected to generate 1.88 times less return on investment than Nib Holdings. In addition to that, SOLSTAD OFFSHORE is 1.81 times more volatile than nib holdings limited. It trades about 0.02 of its total potential returns per unit of risk. nib holdings limited is currently generating about 0.06 per unit of volatility. If you would invest 320.00 in nib holdings limited on October 22, 2024 and sell it today you would earn a total of 4.00 from holding nib holdings limited or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOLSTAD OFFSHORE NK vs. nib holdings limited
Performance |
| Timeline |
| SOLSTAD OFFSHORE |
| nib holdings limited |
SOLSTAD OFFSHORE and Nib Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOLSTAD OFFSHORE and Nib Holdings
The main advantage of trading using opposite SOLSTAD OFFSHORE and Nib Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOLSTAD OFFSHORE position performs unexpectedly, Nib Holdings 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 Nib Holdings will offset losses from the drop in Nib Holdings' long position.| SOLSTAD OFFSHORE vs. De Grey Mining | SOLSTAD OFFSHORE vs. Vienna Insurance Group | SOLSTAD OFFSHORE vs. MCEWEN MINING INC | SOLSTAD OFFSHORE vs. Safety Insurance Group |
| Nib Holdings vs. Direct Line Insurance | Nib Holdings vs. ELECTRONIC ARTS | Nib Holdings vs. BANK OF CHINA | Nib Holdings vs. Nucletron Electronic Aktiengesellschaft |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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