Correlation Between Ocean GeoLoop and Dolphin Drilling

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

By analyzing existing cross correlation between Ocean GeoLoop AS and Dolphin Drilling AS, you can compare the effects of market volatilities on Ocean GeoLoop and Dolphin Drilling 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 Ocean GeoLoop with a short position of Dolphin Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean GeoLoop and Dolphin Drilling.

Diversification Opportunities for Ocean GeoLoop and Dolphin Drilling

0.0

Correlation Coefficient

Ocean GeoLoop  Dolphin Drilling

Pay attention - limited upside

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

Pair Corralation between Ocean GeoLoop and Dolphin Drilling

If you would invest  0.00  in Ocean GeoLoop AS on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Ocean GeoLoop AS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Ocean GeoLoop AS  vs.  Dolphin Drilling AS

Ocean GeoLoop AS

Risk-Adjusted Performance

Insignificant

Over the last 90 days Ocean GeoLoop AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ocean GeoLoop is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Dolphin Drilling

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dolphin Drilling AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Ocean GeoLoop and Dolphin Drilling

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

The idea behind Ocean GeoLoop AS and Dolphin Drilling AS 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 Stocks Directory module to find actively traded stocks across global markets.