Correlation Between Eidesvik Offshore and SoftwareOne Holding
Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and SoftwareOne Holding 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 SoftwareOne Holding 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 SoftwareOne Holding, you can compare the effects of market volatilities on Eidesvik Offshore and SoftwareOne Holding 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 SoftwareOne Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and SoftwareOne Holding.
Diversification Opportunities for Eidesvik Offshore and SoftwareOne Holding
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eidesvik and SoftwareOne is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and SoftwareOne Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftwareOne Holding 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 SoftwareOne Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoftwareOne Holding has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and SoftwareOne Holding go up and down completely randomly.
Pair Corralation between Eidesvik Offshore and SoftwareOne Holding
Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 0.82 times more return on investment than SoftwareOne Holding. However, Eidesvik Offshore ASA is 1.22 times less risky than SoftwareOne Holding. It trades about -0.02 of its potential returns per unit of risk. SoftwareOne Holding is currently generating about -0.1 per unit of risk. If you would invest 1,550 in Eidesvik Offshore ASA on May 31, 2025 and sell it today you would lose (240.00) from holding Eidesvik Offshore ASA or give up 15.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.6% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. SoftwareOne Holding
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| SoftwareOne Holding |
Eidesvik Offshore and SoftwareOne Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eidesvik Offshore and SoftwareOne Holding
The main advantage of trading using opposite Eidesvik Offshore and SoftwareOne Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eidesvik Offshore position performs unexpectedly, SoftwareOne Holding 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 SoftwareOne Holding will offset losses from the drop in SoftwareOne Holding's long position.| Eidesvik Offshore vs. Aker Solutions ASA | Eidesvik Offshore vs. Atlantis Subsea Indonesia | Eidesvik Offshore vs. Dno ASA | Eidesvik Offshore vs. SD Standard Drilling |
| SoftwareOne Holding vs. Equinor ASA | SoftwareOne Holding vs. DnB ASA | SoftwareOne Holding vs. Aker BP ASA | SoftwareOne Holding vs. Telenor ASA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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