Correlation Between SOLSTAD OFFSHORE and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both SOLSTAD OFFSHORE and Solstad Offshore 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 Solstad Offshore 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 Solstad Offshore ASA, you can compare the effects of market volatilities on SOLSTAD OFFSHORE and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOLSTAD OFFSHORE and Solstad Offshore.
Diversification Opportunities for SOLSTAD OFFSHORE and Solstad Offshore
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SOLSTAD and Solstad is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SOLSTAD OFFSHORE NK and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of SOLSTAD OFFSHORE i.e., SOLSTAD OFFSHORE and Solstad Offshore go up and down completely randomly.
Pair Corralation between SOLSTAD OFFSHORE and Solstad Offshore
Assuming the 90 days horizon SOLSTAD OFFSHORE NK is expected to generate 0.95 times more return on investment than Solstad Offshore. However, SOLSTAD OFFSHORE NK is 1.05 times less risky than Solstad Offshore. It trades about 0.07 of its potential returns per unit of risk. Solstad Offshore ASA is currently generating about 0.06 per unit of risk. If you would invest 317.00 in SOLSTAD OFFSHORE NK on August 31, 2024 and sell it today you would earn a total of 43.00 from holding SOLSTAD OFFSHORE NK or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOLSTAD OFFSHORE NK vs. Solstad Offshore ASA
Performance |
| Timeline |
| SOLSTAD OFFSHORE |
| Solstad Offshore ASA |
SOLSTAD OFFSHORE and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOLSTAD OFFSHORE and Solstad Offshore
The main advantage of trading using opposite SOLSTAD OFFSHORE and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOLSTAD OFFSHORE position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| SOLSTAD OFFSHORE vs. UNIVERSAL MUSIC GROUP | SOLSTAD OFFSHORE vs. Cardinal Health | SOLSTAD OFFSHORE vs. CVS Health | SOLSTAD OFFSHORE vs. GUARDANT HEALTH CL |
| Solstad Offshore vs. Perseus Mining Limited | Solstad Offshore vs. Food Life Companies | Solstad Offshore vs. SENECA FOODS A | Solstad Offshore vs. AUSTEVOLL SEAFOOD |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |