Correlation Between Solstad Offshore and XWELL
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore and XWELL 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 XWELL 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 XWELL Inc, you can compare the effects of market volatilities on Solstad Offshore and XWELL 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 XWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and XWELL.
Diversification Opportunities for Solstad Offshore and XWELL
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solstad and XWELL is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and XWELL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XWELL Inc 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 XWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XWELL Inc has no effect on the direction of Solstad Offshore i.e., Solstad Offshore and XWELL go up and down completely randomly.
Pair Corralation between Solstad Offshore and XWELL
Assuming the 90 days horizon Solstad Offshore ASA is expected to generate 0.71 times more return on investment than XWELL. However, Solstad Offshore ASA is 1.41 times less risky than XWELL. It trades about 0.13 of its potential returns per unit of risk. XWELL Inc is currently generating about -0.15 per unit of risk. If you would invest 258.00 in Solstad Offshore ASA on September 3, 2025 and sell it today you would earn a total of 51.00 from holding Solstad Offshore ASA or generate 19.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solstad Offshore ASA vs. XWELL Inc
Performance |
| Timeline |
| Solstad Offshore ASA |
| XWELL Inc |
Solstad Offshore and XWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and XWELL
The main advantage of trading using opposite Solstad Offshore and XWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore position performs unexpectedly, XWELL 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 XWELL will offset losses from the drop in XWELL's long position.| Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. AP Moeller Maersk AS | Solstad Offshore vs. AP Mller |
| XWELL vs. Kingboard Chemical Holdings | XWELL vs. PTT Global Chemical | XWELL vs. QKL Stores | XWELL vs. Burlington Stores |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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