Correlation Between Interroll Holding and SBM Offshore

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

By analyzing existing cross correlation between Interroll Holding AG and SBM Offshore NV, you can compare the effects of market volatilities on Interroll Holding and SBM Offshore 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 Interroll Holding with a short position of SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interroll Holding and SBM Offshore.

Diversification Opportunities for Interroll Holding and SBM Offshore

0.16

Correlation Coefficient

Interroll Holding  SBM Offshore

Average diversification

The 3 months correlation between Interroll and SBM is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Interroll Holding AG and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV and Interroll Holding 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 Interroll Holding AG are associated (or correlated) with SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of Interroll Holding i.e., Interroll Holding and SBM Offshore go up and down completely randomly.

Pair Corralation between Interroll Holding and SBM Offshore

Assuming the 90 days trading horizon Interroll Holding AG is expected to generate 1.74 times more return on investment than SBM Offshore. However, Interroll Holding is 1.74 times more volatile than SBM Offshore NV. It trades about 0.22 of its potential returns per unit of risk. SBM Offshore NV is currently generating about 0.3 per unit of risk. If you would invest  171,787  in Interroll Holding AG on April 24, 2025 and sell it today you would earn a total of  56,713  from holding Interroll Holding AG or generate 33.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Interroll Holding AG  vs.  SBM Offshore NV

Interroll Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Interroll Holding AG are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Interroll Holding showed solid returns over the last few months and may actually be approaching a breakup point.

SBM Offshore NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SBM Offshore NV are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SBM Offshore unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interroll Holding and SBM Offshore

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

The idea behind Interroll Holding AG and SBM Offshore NV 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.