Correlation Between SOLSTAD OFFSHORE and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both SOLSTAD OFFSHORE and ALBIS LEASING 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 ALBIS LEASING 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 ALBIS LEASING AG, you can compare the effects of market volatilities on SOLSTAD OFFSHORE and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOLSTAD OFFSHORE and ALBIS LEASING.
Diversification Opportunities for SOLSTAD OFFSHORE and ALBIS LEASING
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SOLSTAD and ALBIS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding SOLSTAD OFFSHORE NK and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of SOLSTAD OFFSHORE i.e., SOLSTAD OFFSHORE and ALBIS LEASING go up and down completely randomly.
Pair Corralation between SOLSTAD OFFSHORE and ALBIS LEASING
Assuming the 90 days horizon SOLSTAD OFFSHORE NK is expected to generate 2.44 times more return on investment than ALBIS LEASING. However, SOLSTAD OFFSHORE is 2.44 times more volatile than ALBIS LEASING AG. It trades about 0.08 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.04 per unit of risk. If you would invest 335.00 in SOLSTAD OFFSHORE NK on October 28, 2024 and sell it today you would earn a total of 11.00 from holding SOLSTAD OFFSHORE NK or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOLSTAD OFFSHORE NK vs. ALBIS LEASING AG
Performance |
| Timeline |
| SOLSTAD OFFSHORE |
| ALBIS LEASING AG |
SOLSTAD OFFSHORE and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOLSTAD OFFSHORE and ALBIS LEASING
The main advantage of trading using opposite SOLSTAD OFFSHORE and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOLSTAD OFFSHORE position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| SOLSTAD OFFSHORE vs. TIANDE CHEMICAL | SOLSTAD OFFSHORE vs. Nordic Semiconductor ASA | SOLSTAD OFFSHORE vs. Silicon Motion Technology | SOLSTAD OFFSHORE vs. Mitsubishi Gas Chemical |
| ALBIS LEASING vs. SBM OFFSHORE | ALBIS LEASING vs. Eidesvik Offshore ASA | ALBIS LEASING vs. GungHo Online Entertainment | ALBIS LEASING vs. SOLSTAD OFFSHORE NK |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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