Correlation Between Solstad Offshore and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore and Calibre Mining 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 Calibre Mining 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 Calibre Mining Corp, you can compare the effects of market volatilities on Solstad Offshore and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and Calibre Mining.
Diversification Opportunities for Solstad Offshore and Calibre Mining
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Solstad and Calibre is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of Solstad Offshore i.e., Solstad Offshore and Calibre Mining go up and down completely randomly.
Pair Corralation between Solstad Offshore and Calibre Mining
Assuming the 90 days trading horizon Solstad Offshore ASA is expected to under-perform the Calibre Mining. But the stock apears to be less risky and, when comparing its historical volatility, Solstad Offshore ASA is 1.37 times less risky than Calibre Mining. The stock trades about -0.03 of its potential returns per unit of risk. The Calibre Mining Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 168.00 in Calibre Mining Corp on October 30, 2024 and sell it today you would lose (4.00) from holding Calibre Mining Corp or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solstad Offshore ASA vs. Calibre Mining Corp
Performance |
| Timeline |
| Solstad Offshore ASA |
| Calibre Mining Corp |
Solstad Offshore and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and Calibre Mining
The main advantage of trading using opposite Solstad Offshore and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| Solstad Offshore vs. Nok Airlines PCL | Solstad Offshore vs. China Eastern Airlines | Solstad Offshore vs. International Consolidated Airlines | Solstad Offshore vs. IMPERIAL TOBACCO |
| Calibre Mining vs. KINGBOARD CHEMICAL | Calibre Mining vs. Quaker Chemical | Calibre Mining vs. INDO RAMA SYNTHETIC | Calibre Mining vs. TRI CHEMICAL LABORATINC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |