Correlation Between SBM Offshore and Hawaiian Hospitality

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Can any of the company-specific risk be diversified away by investing in both SBM Offshore and Hawaiian Hospitality 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 SBM Offshore and Hawaiian Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBM Offshore NV and Hawaiian Hospitality Group, you can compare the effects of market volatilities on SBM Offshore and Hawaiian Hospitality 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 SBM Offshore with a short position of Hawaiian Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and Hawaiian Hospitality.

Diversification Opportunities for SBM Offshore and Hawaiian Hospitality

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between SBM Offshore and Hawaiian Hospitality

If you would invest  2,725  in SBM Offshore NV on August 30, 2025 and sell it today you would earn a total of  134.00  from holding SBM Offshore NV or generate 4.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SBM Offshore NV  vs.  Hawaiian Hospitality Group

 Performance 
       Timeline  
SBM Offshore NV 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SBM Offshore NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent technical and fundamental indicators, SBM Offshore may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Hawaiian Hospitality 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hawaiian Hospitality Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Hawaiian Hospitality is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

SBM Offshore and Hawaiian Hospitality Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SBM Offshore and Hawaiian Hospitality

The main advantage of trading using opposite SBM Offshore and Hawaiian Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore position performs unexpectedly, Hawaiian Hospitality 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 Hawaiian Hospitality will offset losses from the drop in Hawaiian Hospitality's long position.
The idea behind SBM Offshore NV and Hawaiian Hospitality Group 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.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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