Correlation Between EIDESVIK OFFSHORE and FLAT GLASS

Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and FLAT GLASS 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 FLAT GLASS 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 FLAT GLASS INDS, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and FLAT GLASS 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 FLAT GLASS. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and FLAT GLASS.

Diversification Opportunities for EIDESVIK OFFSHORE and FLAT GLASS

0.0

Correlation Coefficient

EIDESVIK OFFSHORE  FLAT GLASS

Pay attention - limited upside

The 3 months correlation between EIDESVIK and FLAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and FLAT GLASS INDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLAT GLASS INDS 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 FLAT GLASS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLAT GLASS INDS has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and FLAT GLASS go up and down completely randomly.

Pair Corralation between EIDESVIK OFFSHORE and FLAT GLASS

If you would invest  0.00  in FLAT GLASS INDS on December 20, 2024 and sell it today you would earn a total of  0.00  from holding FLAT GLASS INDS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

EIDESVIK OFFSHORE NK  vs.  FLAT GLASS INDS

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 latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

FLAT GLASS INDS

Risk-Adjusted Performance

Very Weak

Over the last 90 days FLAT GLASS INDS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, FLAT GLASS is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with EIDESVIK OFFSHORE and FLAT GLASS

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

The idea behind EIDESVIK OFFSHORE NK and FLAT GLASS INDS 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.