Correlation Between Stolt Nielsen and Pexip Holding
Can any of the company-specific risk be diversified away by investing in both Stolt Nielsen and Pexip 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 Stolt Nielsen and Pexip Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stolt Nielsen Limited and Pexip Holding ASA, you can compare the effects of market volatilities on Stolt Nielsen and Pexip 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 Stolt Nielsen with a short position of Pexip Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stolt Nielsen and Pexip Holding.
Diversification Opportunities for Stolt Nielsen and Pexip Holding
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stolt and Pexip is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Stolt Nielsen Limited and Pexip Holding ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pexip Holding ASA and Stolt Nielsen 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 Stolt Nielsen Limited are associated (or correlated) with Pexip Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pexip Holding ASA has no effect on the direction of Stolt Nielsen i.e., Stolt Nielsen and Pexip Holding go up and down completely randomly.
Pair Corralation between Stolt Nielsen and Pexip Holding
Assuming the 90 days trading horizon Stolt Nielsen is expected to generate 7.7 times less return on investment than Pexip Holding. But when comparing it to its historical volatility, Stolt Nielsen Limited is 1.09 times less risky than Pexip Holding. It trades about 0.02 of its potential returns per unit of risk. Pexip Holding ASA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,336 in Pexip Holding ASA on October 7, 2025 and sell it today you would earn a total of 5,124 from holding Pexip Holding ASA or generate 219.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stolt Nielsen Limited vs. Pexip Holding ASA
Performance |
| Timeline |
| Stolt Nielsen Limited |
| Pexip Holding ASA |
Stolt Nielsen and Pexip Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stolt Nielsen and Pexip Holding
The main advantage of trading using opposite Stolt Nielsen and Pexip Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stolt Nielsen position performs unexpectedly, Pexip 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 Pexip Holding will offset losses from the drop in Pexip Holding's long position.| Stolt Nielsen vs. Hoegh Autoliners ASA | Stolt Nielsen vs. Cadeler As | Stolt Nielsen vs. Wilh Wilhelmsen Holding | Stolt Nielsen vs. BW LPG |
| Pexip Holding vs. Bouvet | Pexip Holding vs. SmartCraft ASA | Pexip Holding vs. Smartoptics Group AS | Pexip Holding vs. Techstep 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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