Correlation Between Solstad Offshore and Under Armour
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore and Under Armour 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 Under Armour 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 Under Armour C, you can compare the effects of market volatilities on Solstad Offshore and Under Armour 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 Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and Under Armour.
Diversification Opportunities for Solstad Offshore and Under Armour
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solstad and Under is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of Solstad Offshore i.e., Solstad Offshore and Under Armour go up and down completely randomly.
Pair Corralation between Solstad Offshore and Under Armour
If you would invest 740.00 in Under Armour C on September 23, 2024 and sell it today you would earn a total of 38.00 from holding Under Armour C or generate 5.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.48% |
Values | Daily Returns |
Solstad Offshore ASA vs. Under Armour C
Performance |
Timeline |
Solstad Offshore ASA |
Under Armour C |
Solstad Offshore and Under Armour Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Solstad Offshore and Under Armour
The main advantage of trading using opposite Solstad Offshore and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour's long position.Solstad Offshore vs. Under Armour C | Solstad Offshore vs. Sligro Food Group | Solstad Offshore vs. Tyson Foods | Solstad Offshore vs. Albertsons Companies |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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