Correlation Between Solstad Offshore and Tekla Life
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore and Tekla Life 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 Solstad Offshore and Tekla Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstad Offshore ASA and Tekla Life Sciences, you can compare the effects of market volatilities on Solstad Offshore and Tekla Life 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 Solstad Offshore with a short position of Tekla Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and Tekla Life.
Diversification Opportunities for Solstad Offshore and Tekla Life
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Solstad and Tekla is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and Tekla Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Life Sciences and Solstad 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 Solstad Offshore ASA are associated (or correlated) with Tekla Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Life Sciences has no effect on the direction of Solstad Offshore i.e., Solstad Offshore and Tekla Life go up and down completely randomly.
Pair Corralation between Solstad Offshore and Tekla Life
Assuming the 90 days horizon Solstad Offshore is expected to generate 1.22 times less return on investment than Tekla Life. In addition to that, Solstad Offshore is 1.58 times more volatile than Tekla Life Sciences. It trades about 0.13 of its total potential returns per unit of risk. Tekla Life Sciences is currently generating about 0.24 per unit of volatility. If you would invest 1,352 in Tekla Life Sciences on September 13, 2025 and sell it today you would earn a total of 362.00 from holding Tekla Life Sciences or generate 26.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Solstad Offshore ASA vs. Tekla Life Sciences
Performance |
| Timeline |
| Solstad Offshore ASA |
| Tekla Life Sciences |
Solstad Offshore and Tekla Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and Tekla Life
The main advantage of trading using opposite Solstad Offshore and Tekla Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore position performs unexpectedly, Tekla Life 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 Tekla Life will offset losses from the drop in Tekla Life's long position.| Solstad Offshore vs. Jinhui Shipping and | Solstad Offshore vs. QEP Co Inc | Solstad Offshore vs. Ten Pao Group | Solstad Offshore vs. Norse Atlantic ASA |
| Tekla Life vs. Cion Investment Corp | Tekla Life vs. BlackRock TCP Capital | Tekla Life vs. Gladstone Capital | Tekla Life vs. GigCapital7 Corp Class |
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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