Correlation Between SOLSTAD OFFSHORE and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both SOLSTAD OFFSHORE and JINS 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 JINS 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 JINS HOLDINGS INC, you can compare the effects of market volatilities on SOLSTAD OFFSHORE and JINS 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 JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOLSTAD OFFSHORE and JINS HOLDINGS.
Diversification Opportunities for SOLSTAD OFFSHORE and JINS HOLDINGS
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOLSTAD and JINS is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding SOLSTAD OFFSHORE NK and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS 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 NK are associated (or correlated) with JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of SOLSTAD OFFSHORE i.e., SOLSTAD OFFSHORE and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between SOLSTAD OFFSHORE and JINS HOLDINGS
Assuming the 90 days horizon SOLSTAD OFFSHORE NK is expected to generate 1.79 times more return on investment than JINS HOLDINGS. However, SOLSTAD OFFSHORE is 1.79 times more volatile than JINS HOLDINGS INC. It trades about 0.15 of its potential returns per unit of risk. JINS HOLDINGS INC is currently generating about 0.08 per unit of risk. If you would invest 254.00 in SOLSTAD OFFSHORE NK on October 26, 2024 and sell it today you would earn a total of 91.00 from holding SOLSTAD OFFSHORE NK or generate 35.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOLSTAD OFFSHORE NK vs. JINS HOLDINGS INC
Performance |
| Timeline |
| SOLSTAD OFFSHORE |
| JINS HOLDINGS INC |
SOLSTAD OFFSHORE and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOLSTAD OFFSHORE and JINS HOLDINGS
The main advantage of trading using opposite SOLSTAD OFFSHORE and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOLSTAD OFFSHORE position performs unexpectedly, JINS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| SOLSTAD OFFSHORE vs. AP Mller | SOLSTAD OFFSHORE vs. AP Mller | SOLSTAD OFFSHORE vs. HAPAG LLOYD UNSPADR 12 | SOLSTAD OFFSHORE vs. DFDS AS |
| JINS HOLDINGS vs. ARDAGH METAL PACDL 0001 | JINS HOLDINGS vs. FIREWEED METALS P | JINS HOLDINGS vs. British American Tobacco | JINS HOLDINGS vs. Perseus Mining Limited |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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