Correlation Between Wilh Wilhelmsen and SOLSTAD OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen and SOLSTAD OFFSHORE 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 Wilh Wilhelmsen and SOLSTAD OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilh Wilhelmsen Holding and SOLSTAD OFFSHORE NK, you can compare the effects of market volatilities on Wilh Wilhelmsen and SOLSTAD OFFSHORE 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 Wilh Wilhelmsen with a short position of SOLSTAD OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and SOLSTAD OFFSHORE.
Diversification Opportunities for Wilh Wilhelmsen and SOLSTAD OFFSHORE
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wilh and SOLSTAD is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and SOLSTAD OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOLSTAD OFFSHORE and Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding are associated (or correlated) with SOLSTAD OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOLSTAD OFFSHORE has no effect on the direction of Wilh Wilhelmsen i.e., Wilh Wilhelmsen and SOLSTAD OFFSHORE go up and down completely randomly.
Pair Corralation between Wilh Wilhelmsen and SOLSTAD OFFSHORE
Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to generate 1.14 times more return on investment than SOLSTAD OFFSHORE. However, Wilh Wilhelmsen is 1.14 times more volatile than SOLSTAD OFFSHORE NK. It trades about 0.1 of its potential returns per unit of risk. SOLSTAD OFFSHORE NK is currently generating about 0.1 per unit of risk. If you would invest 2,545 in Wilh Wilhelmsen Holding on September 12, 2024 and sell it today you would earn a total of 655.00 from holding Wilh Wilhelmsen Holding or generate 25.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Wilh Wilhelmsen Holding vs. SOLSTAD OFFSHORE NK
Performance |
Timeline |
Wilh Wilhelmsen Holding |
SOLSTAD OFFSHORE |
Wilh Wilhelmsen and SOLSTAD OFFSHORE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wilh Wilhelmsen and SOLSTAD OFFSHORE
The main advantage of trading using opposite Wilh Wilhelmsen and SOLSTAD OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilh Wilhelmsen position performs unexpectedly, SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE will offset losses from the drop in SOLSTAD OFFSHORE's long position.Wilh Wilhelmsen vs. National Beverage Corp | Wilh Wilhelmsen vs. Lifeway Foods | Wilh Wilhelmsen vs. MAGNUM MINING EXP | Wilh Wilhelmsen vs. ASSOC BR FOODS |
SOLSTAD OFFSHORE vs. Superior Plus Corp | SOLSTAD OFFSHORE vs. SIVERS SEMICONDUCTORS AB | SOLSTAD OFFSHORE vs. CHINA HUARONG ENERHD 50 | SOLSTAD OFFSHORE vs. NORDIC HALIBUT AS |
Check out your portfolio center.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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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