Correlation Between Wilh Wilhelmsen and Endur ASA
Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen and Endur ASA 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 Endur ASA 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 Endur ASA, you can compare the effects of market volatilities on Wilh Wilhelmsen and Endur ASA 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 Endur ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and Endur ASA.
Diversification Opportunities for Wilh Wilhelmsen and Endur ASA
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wilh and Endur is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and Endur ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endur ASA 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 Endur ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endur ASA has no effect on the direction of Wilh Wilhelmsen i.e., Wilh Wilhelmsen and Endur ASA go up and down completely randomly.
Pair Corralation between Wilh Wilhelmsen and Endur ASA
Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to under-perform the Endur ASA. In addition to that, Wilh Wilhelmsen is 2.17 times more volatile than Endur ASA. It trades about -0.09 of its total potential returns per unit of risk. Endur ASA is currently generating about 0.3 per unit of volatility. If you would invest 5,920 in Endur ASA on August 28, 2024 and sell it today you would earn a total of 400.00 from holding Endur ASA or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilh Wilhelmsen Holding vs. Endur ASA
Performance |
| Timeline |
| Wilh Wilhelmsen Holding |
| Endur ASA |
Wilh Wilhelmsen and Endur ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilh Wilhelmsen and Endur ASA
The main advantage of trading using opposite Wilh Wilhelmsen and Endur ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilh Wilhelmsen position performs unexpectedly, Endur ASA 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 Endur ASA will offset losses from the drop in Endur ASA's long position.| Wilh Wilhelmsen vs. Shelf Drilling | Wilh Wilhelmsen vs. Solstad Offsho | Wilh Wilhelmsen vs. Eidesvik Offshore ASA | Wilh Wilhelmsen vs. Elkem ASA |
| Endur ASA vs. Magnora ASA | Endur ASA vs. Next Biometrics Group | Endur ASA vs. Idex ASA | Endur ASA vs. Eidesvik Offshore ASA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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