Correlation Between Eidesvik Offshore and CREDIT AGRICOLE

Can any of the company-specific risk be diversified away by investing in both Eidesvik Offshore and CREDIT AGRICOLE 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 CREDIT AGRICOLE 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 CREDIT AGRICOLE, you can compare the effects of market volatilities on Eidesvik Offshore and CREDIT AGRICOLE 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 CREDIT AGRICOLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eidesvik Offshore and CREDIT AGRICOLE.

Diversification Opportunities for Eidesvik Offshore and CREDIT AGRICOLE

0.27

Correlation Coefficient

Eidesvik Offshore  CREDIT AGRICOLE

Modest diversification

The 3 months correlation between Eidesvik and CREDIT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA and CREDIT AGRICOLE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT AGRICOLE 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 CREDIT AGRICOLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT AGRICOLE has no effect on the direction of Eidesvik Offshore i.e., Eidesvik Offshore and CREDIT AGRICOLE go up and down completely randomly.

Pair Corralation between Eidesvik Offshore and CREDIT AGRICOLE

Assuming the 90 days trading horizon Eidesvik Offshore ASA is expected to generate 1.93 times more return on investment than CREDIT AGRICOLE. However, Eidesvik Offshore is 1.93 times more volatile than CREDIT AGRICOLE. It trades about 0.07 of its potential returns per unit of risk. CREDIT AGRICOLE is currently generating about 0.05 per unit of risk. If you would invest  99.00  in Eidesvik Offshore ASA on May 7, 2025 and sell it today you would earn a total of  9.00  from holding Eidesvik Offshore ASA or generate 9.09% return on investment over 90 days.

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

Eidesvik Offshore ASA  vs.  CREDIT AGRICOLE

Eidesvik Offshore ASA

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Eidesvik Offshore ASA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Eidesvik Offshore may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CREDIT AGRICOLE

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CREDIT AGRICOLE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CREDIT AGRICOLE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Eidesvik Offshore and CREDIT AGRICOLE

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

The idea behind Eidesvik Offshore ASA and CREDIT AGRICOLE 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.