Correlation Between EIDESVIK OFFSHORE and Intermediate Capital

Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and Intermediate Capital 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 EIDESVIK OFFSHORE and Intermediate Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EIDESVIK OFFSHORE NK and Intermediate Capital Group, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and Intermediate Capital 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 EIDESVIK OFFSHORE with a short position of Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and Intermediate Capital.

Diversification Opportunities for EIDESVIK OFFSHORE and Intermediate Capital

0.73

Correlation Coefficient

EIDESVIK OFFSHORE  Intermediate Capital

Poor diversification

The 3 months correlation between EIDESVIK and Intermediate is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital and EIDESVIK 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 EIDESVIK OFFSHORE NK are associated (or correlated) with Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and Intermediate Capital go up and down completely randomly.

Pair Corralation between EIDESVIK OFFSHORE and Intermediate Capital

Assuming the 90 days horizon EIDESVIK OFFSHORE is expected to generate 1.55 times less return on investment than Intermediate Capital. In addition to that, EIDESVIK OFFSHORE is 1.5 times more volatile than Intermediate Capital Group. It trades about 0.07 of its total potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.17 per unit of volatility. If you would invest  1,963  in Intermediate Capital Group on April 23, 2025 and sell it today you would earn a total of  477.00  from holding Intermediate Capital Group or generate 24.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

EIDESVIK OFFSHORE NK  vs.  Intermediate Capital Group

EIDESVIK OFFSHORE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in EIDESVIK OFFSHORE NK are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, EIDESVIK OFFSHORE reported solid returns over the last few months and may actually be approaching a breakup point.

Intermediate Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intermediate Capital Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Intermediate Capital unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EIDESVIK OFFSHORE and Intermediate Capital

The main advantage of trading using opposite EIDESVIK OFFSHORE and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, Intermediate Capital 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 Intermediate Capital will offset losses from the drop in Intermediate Capital's long position.

The idea behind EIDESVIK OFFSHORE NK and Intermediate Capital 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.