Correlation Between SOLSTAD OFFSHORE and Wilh Wilhelmsen
Can any of the company-specific risk be diversified away by investing in both SOLSTAD OFFSHORE 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 OFFSHORE 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 OFFSHORE NK and Wilh Wilhelmsen Holding, you can compare the effects of market volatilities on SOLSTAD OFFSHORE 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 OFFSHORE with a short position of Wilh Wilhelmsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOLSTAD OFFSHORE and Wilh Wilhelmsen.
Diversification Opportunities for SOLSTAD OFFSHORE and Wilh Wilhelmsen
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOLSTAD and Wilh is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SOLSTAD OFFSHORE NK 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 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 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 OFFSHORE i.e., SOLSTAD OFFSHORE and Wilh Wilhelmsen go up and down completely randomly.
Pair Corralation between SOLSTAD OFFSHORE and Wilh Wilhelmsen
Assuming the 90 days horizon SOLSTAD OFFSHORE is expected to generate 3.03 times less return on investment than Wilh Wilhelmsen. In addition to that, SOLSTAD OFFSHORE is 1.17 times more volatile than Wilh Wilhelmsen Holding. It trades about 0.03 of its total potential returns per unit of risk. Wilh Wilhelmsen Holding is currently generating about 0.09 per unit of volatility. If you would invest 775.00 in Wilh Wilhelmsen Holding on September 12, 2024 and sell it today you would earn a total of 2,425 from holding Wilh Wilhelmsen Holding or generate 312.9% 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. Wilh Wilhelmsen Holding
Performance |
| Timeline |
| SOLSTAD OFFSHORE |
| Wilh Wilhelmsen Holding |
SOLSTAD OFFSHORE and Wilh Wilhelmsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOLSTAD OFFSHORE and Wilh Wilhelmsen
The main advantage of trading using opposite SOLSTAD OFFSHORE and Wilh Wilhelmsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOLSTAD OFFSHORE 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 OFFSHORE vs. Superior Plus Corp | SOLSTAD OFFSHORE vs. SIVERS SEMICONDUCTORS AB | SOLSTAD OFFSHORE vs. CHINA HUARONG ENERHD 50 | SOLSTAD OFFSHORE vs. NORDIC HALIBUT AS |
| Wilh Wilhelmsen vs. National Beverage Corp | Wilh Wilhelmsen vs. Lifeway Foods | Wilh Wilhelmsen vs. MAGNUM MINING EXP | Wilh Wilhelmsen vs. ASSOC BR FOODS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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