Correlation Between EIDESVIK OFFSHORE and Zoom Video

Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and Zoom Video 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 EIDESVIK OFFSHORE and Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EIDESVIK OFFSHORE NK and Zoom Video Communications, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and Zoom Video 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 EIDESVIK OFFSHORE with a short position of Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and Zoom Video.

Diversification Opportunities for EIDESVIK OFFSHORE and Zoom Video

0.69

Correlation Coefficient

EIDESVIK OFFSHORE  Zoom Video

Poor diversification

The 3 months correlation between EIDESVIK and Zoom is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications and EIDESVIK 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 EIDESVIK OFFSHORE NK are associated (or correlated) with Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and Zoom Video go up and down completely randomly.

Pair Corralation between EIDESVIK OFFSHORE and Zoom Video

Assuming the 90 days horizon EIDESVIK OFFSHORE NK is expected to generate 1.13 times more return on investment than Zoom Video. However, EIDESVIK OFFSHORE is 1.13 times more volatile than Zoom Video Communications. It trades about -0.04 of its potential returns per unit of risk. Zoom Video Communications is currently generating about -0.11 per unit of risk. If you would invest  108.00  in EIDESVIK OFFSHORE NK on December 22, 2024 and sell it today you would lose (8.00) from holding EIDESVIK OFFSHORE NK or give up 7.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

EIDESVIK OFFSHORE NK  vs.  Zoom Video Communications

EIDESVIK OFFSHORE

Risk-Adjusted Performance

Very Weak

Over the last 90 days EIDESVIK OFFSHORE NK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EIDESVIK OFFSHORE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Zoom Video Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zoom Video Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with EIDESVIK OFFSHORE and Zoom Video

The main advantage of trading using opposite EIDESVIK OFFSHORE and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.

The idea behind EIDESVIK OFFSHORE NK and Zoom Video Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.