Correlation Between BW Offshore and Grand Vision
Can any of the company-specific risk be diversified away by investing in both BW Offshore and Grand Vision 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 BW Offshore and Grand Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW Offshore and Grand Vision Media, you can compare the effects of market volatilities on BW Offshore and Grand Vision 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 BW Offshore with a short position of Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Grand Vision.
Diversification Opportunities for BW Offshore and Grand Vision
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0RKH and Grand is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media and BW 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 BW Offshore are associated (or correlated) with Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of BW Offshore i.e., BW Offshore and Grand Vision go up and down completely randomly.
Pair Corralation between BW Offshore and Grand Vision
Assuming the 90 days trading horizon BW Offshore is expected to generate 1.2 times more return on investment than Grand Vision. However, BW Offshore is 1.2 times more volatile than Grand Vision Media. It trades about 0.08 of its potential returns per unit of risk. Grand Vision Media is currently generating about -0.08 per unit of risk. If you would invest 1,934 in BW Offshore on September 4, 2024 and sell it today you would earn a total of 829.00 from holding BW Offshore or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.19% |
| Values | Daily Returns |
BW Offshore vs. Grand Vision Media
Performance |
| Timeline |
| BW Offshore |
| Grand Vision Media |
BW Offshore and Grand Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW Offshore and Grand Vision
The main advantage of trading using opposite BW Offshore and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.| BW Offshore vs. Grand Vision Media | BW Offshore vs. Infrastrutture Wireless Italiane | BW Offshore vs. Prosiebensat 1 Media | BW Offshore vs. MediaZest plc |
| Grand Vision vs. Samsung Electronics Co | Grand Vision vs. Samsung Electronics Co | Grand Vision vs. Hyundai Motor | Grand Vision vs. Toyota Motor Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |