Correlation Between Solstad Offshore and FISH PAYK
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore and FISH PAYK 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 FISH PAYK 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 FISH PAYK HEALTH, you can compare the effects of market volatilities on Solstad Offshore and FISH PAYK 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 FISH PAYK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and FISH PAYK.
Diversification Opportunities for Solstad Offshore and FISH PAYK
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Solstad and FISH is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and FISH PAYK HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FISH PAYK HEALTH 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 FISH PAYK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FISH PAYK HEALTH has no effect on the direction of Solstad Offshore i.e., Solstad Offshore and FISH PAYK go up and down completely randomly.
Pair Corralation between Solstad Offshore and FISH PAYK
Assuming the 90 days trading horizon Solstad Offshore ASA is expected to generate 2.35 times more return on investment than FISH PAYK. However, Solstad Offshore is 2.35 times more volatile than FISH PAYK HEALTH. It trades about 0.19 of its potential returns per unit of risk. FISH PAYK HEALTH is currently generating about 0.08 per unit of risk. If you would invest 270.00 in Solstad Offshore ASA on August 29, 2024 and sell it today you would earn a total of 95.00 from holding Solstad Offshore ASA or generate 35.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solstad Offshore ASA vs. FISH PAYK HEALTH
Performance |
| Timeline |
| Solstad Offshore ASA |
| FISH PAYK HEALTH |
Solstad Offshore and FISH PAYK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and FISH PAYK
The main advantage of trading using opposite Solstad Offshore and FISH PAYK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore position performs unexpectedly, FISH PAYK 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 FISH PAYK will offset losses from the drop in FISH PAYK's long position.| Solstad Offshore vs. ZIM Integrated Shipping | Solstad Offshore vs. Superior Plus Corp | Solstad Offshore vs. NMI Holdings | Solstad Offshore vs. SIVERS SEMICONDUCTORS AB |
| FISH PAYK vs. Apple Inc | FISH PAYK vs. Apple Inc | FISH PAYK vs. Superior Plus Corp | FISH PAYK vs. SIVERS SEMICONDUCTORS AB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |