Correlation Between Eidesvik Offshore and Argeo AS

Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and Argeo AS 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 Argeo AS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eidesvik Offshore ASA and Argeo AS, you can compare the effects of market volatilities on Eidesvik Offshore and Argeo AS 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 Argeo AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and Argeo AS.

Diversification Opportunities for Eidesvik Offshore and Argeo AS

-0.49

Correlation Coefficient

Eidesvik Offshore  Argeo AS

Very good diversification

The 3 months correlation between Eidesvik and Argeo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and Argeo AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argeo AS 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 ASA are associated (or correlated) with Argeo AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argeo AS has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and Argeo AS go up and down completely randomly.

Pair Corralation between Eidesvik Offshore and Argeo AS

Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 0.14 times more return on investment than Argeo AS. However, Eidesvik Offshore ASA is 7.17 times less risky than Argeo AS. It trades about 0.12 of its potential returns per unit of risk. Argeo AS is currently generating about -0.12 per unit of risk. If you would invest  1,130  in Eidesvik Offshore ASA on April 24, 2025 and sell it today you would earn a total of  155.00  from holding Eidesvik Offshore ASA or generate 13.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Eidesvik Offshore ASA  vs.  Argeo AS

Eidesvik Offshore ASA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eidesvik Offshore ASA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Eidesvik Offshore disclosed solid returns over the last few months and may actually be approaching a breakup point.

Argeo AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Argeo AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Eidesvik Offshore and Argeo AS

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

The idea behind Eidesvik Offshore ASA and Argeo AS 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.