Correlation Between Wilh Wilhelmsen and Odfjell SE
Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen and Odfjell SE 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 Wilh Wilhelmsen and Odfjell SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilh Wilhelmsen Holding and Odfjell SE, you can compare the effects of market volatilities on Wilh Wilhelmsen and Odfjell SE 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 Wilh Wilhelmsen with a short position of Odfjell SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and Odfjell SE.
Diversification Opportunities for Wilh Wilhelmsen and Odfjell SE
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wilh and Odfjell is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and Odfjell SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odfjell SE and Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding are associated (or correlated) with Odfjell SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odfjell SE has no effect on the direction of Wilh Wilhelmsen i.e., Wilh Wilhelmsen and Odfjell SE go up and down completely randomly.
Pair Corralation between Wilh Wilhelmsen and Odfjell SE
Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to generate 0.75 times more return on investment than Odfjell SE. However, Wilh Wilhelmsen Holding is 1.34 times less risky than Odfjell SE. It trades about 0.08 of its potential returns per unit of risk. Odfjell SE is currently generating about 0.05 per unit of risk. If you would invest 26,152 in Wilh Wilhelmsen Holding on August 31, 2024 and sell it today you would earn a total of 14,348 from holding Wilh Wilhelmsen Holding or generate 54.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilh Wilhelmsen Holding vs. Odfjell SE
Performance |
| Timeline |
| Wilh Wilhelmsen Holding |
| Odfjell SE |
Wilh Wilhelmsen and Odfjell SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilh Wilhelmsen and Odfjell SE
The main advantage of trading using opposite Wilh Wilhelmsen and Odfjell SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilh Wilhelmsen position performs unexpectedly, Odfjell SE 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 Odfjell SE will offset losses from the drop in Odfjell SE's long position.| Wilh Wilhelmsen vs. Stolt Nielsen Limited | Wilh Wilhelmsen vs. Wilh Wilhelmsen Holding | Wilh Wilhelmsen vs. Veidekke ASA | Wilh Wilhelmsen vs. Odfjell SE |
| Odfjell SE vs. Stolt Nielsen Limited | Odfjell SE vs. Odfjell B | Odfjell SE vs. Wilh Wilhelmsen Holding | Odfjell SE vs. Frontline |
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 CEOs Directory module to screen CEOs from public companies around the world.
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