Correlation Between Stolt Nielsen and ContextVision

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

By analyzing existing cross correlation between Stolt Nielsen Limited and ContextVision AB, you can compare the effects of market volatilities on Stolt Nielsen and ContextVision 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 Stolt Nielsen with a short position of ContextVision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stolt Nielsen and ContextVision.

Diversification Opportunities for Stolt Nielsen and ContextVision

0.0

Correlation Coefficient

Stolt Nielsen  ContextVision

Pay attention - limited upside

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

Pair Corralation between Stolt Nielsen and ContextVision

If you would invest (100.00) in ContextVision AB on September 4, 2024 and sell it today you would earn a total of  100.00  from holding ContextVision AB or generate -100.0% return on investment over 90 days.

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

Stolt Nielsen Limited  vs.  ContextVision AB

Stolt Nielsen Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stolt Nielsen Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

ContextVision AB

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Stolt Nielsen and ContextVision

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

The idea behind Stolt Nielsen Limited and ContextVision AB 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.