Correlation Between Eidesvik Offshore and HNI

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

By analyzing existing cross correlation between Eidesvik Offshore ASA and HNI Corporation, you can compare the effects of market volatilities on Eidesvik Offshore and HNI 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 HNI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and HNI.

Diversification Opportunities for Eidesvik Offshore and HNI

0.0

Correlation Coefficient

Eidesvik Offshore  HNI

Pay attention - limited upside

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

Pair Corralation between Eidesvik Offshore and HNI

If you would invest  111.00  in Eidesvik Offshore ASA on October 26, 2024 and sell it today you would earn a total of  2.00  from holding Eidesvik Offshore ASA or generate 1.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eidesvik Offshore ASA  vs.  HNI Corp.

Eidesvik Offshore ASA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eidesvik Offshore ASA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Eidesvik Offshore is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

HNI Corporation

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Eidesvik Offshore and HNI

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

The idea behind Eidesvik Offshore ASA and HNI Corporation 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.