Correlation Between Solstad Offshore and ATOSS SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore and ATOSS SOFTWARE 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 ATOSS SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstad Offshore ASA and ATOSS SOFTWARE, you can compare the effects of market volatilities on Solstad Offshore and ATOSS SOFTWARE 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 ATOSS SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and ATOSS SOFTWARE.
Diversification Opportunities for Solstad Offshore and ATOSS SOFTWARE
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Solstad and ATOSS is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE 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 ASA are associated (or correlated) with ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of Solstad Offshore i.e., Solstad Offshore and ATOSS SOFTWARE go up and down completely randomly.
Pair Corralation between Solstad Offshore and ATOSS SOFTWARE
Assuming the 90 days trading horizon Solstad Offshore ASA is expected to generate 2.71 times more return on investment than ATOSS SOFTWARE. However, Solstad Offshore is 2.71 times more volatile than ATOSS SOFTWARE. It trades about 0.21 of its potential returns per unit of risk. ATOSS SOFTWARE is currently generating about 0.05 per unit of risk. If you would invest 278.00 in Solstad Offshore ASA on September 1, 2024 and sell it today you would earn a total of 71.00 from holding Solstad Offshore ASA or generate 25.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solstad Offshore ASA vs. ATOSS SOFTWARE
Performance |
| Timeline |
| Solstad Offshore ASA |
| ATOSS SOFTWARE |
Solstad Offshore and ATOSS SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and ATOSS SOFTWARE
The main advantage of trading using opposite Solstad Offshore and ATOSS SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore position performs unexpectedly, ATOSS SOFTWARE 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 ATOSS SOFTWARE will offset losses from the drop in ATOSS SOFTWARE's long position.| Solstad Offshore vs. Tradeweb Markets | Solstad Offshore vs. National Retail Properties | Solstad Offshore vs. Zoom Video Communications | Solstad Offshore vs. Auto Trader Group |
| ATOSS SOFTWARE vs. SIVERS SEMICONDUCTORS AB | ATOSS SOFTWARE vs. Darden Restaurants | ATOSS SOFTWARE vs. Reliance Steel Aluminum | ATOSS SOFTWARE vs. Q2M Managementberatung AG |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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