Correlation Between AXWAY SOFTWARE and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both AXWAY SOFTWARE and BW 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 AXWAY SOFTWARE and BW OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXWAY SOFTWARE EO and BW OFFSHORE LTD, you can compare the effects of market volatilities on AXWAY SOFTWARE and BW 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 AXWAY SOFTWARE with a short position of BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXWAY SOFTWARE and BW OFFSHORE.
Diversification Opportunities for AXWAY SOFTWARE and BW OFFSHORE
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AXWAY and XY81 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AXWAY SOFTWARE EO and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD and AXWAY SOFTWARE 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 AXWAY SOFTWARE EO are associated (or correlated) with BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of AXWAY SOFTWARE i.e., AXWAY SOFTWARE and BW OFFSHORE go up and down completely randomly.
Pair Corralation between AXWAY SOFTWARE and BW OFFSHORE
Assuming the 90 days horizon AXWAY SOFTWARE EO is expected to generate 0.24 times more return on investment than BW OFFSHORE. However, AXWAY SOFTWARE EO is 4.16 times less risky than BW OFFSHORE. It trades about -0.1 of its potential returns per unit of risk. BW OFFSHORE LTD is currently generating about -0.04 per unit of risk. If you would invest 2,750 in AXWAY SOFTWARE EO on September 1, 2024 and sell it today you would lose (50.00) from holding AXWAY SOFTWARE EO or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXWAY SOFTWARE EO vs. BW OFFSHORE LTD
Performance |
| Timeline |
| AXWAY SOFTWARE EO |
| BW OFFSHORE LTD |
AXWAY SOFTWARE and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXWAY SOFTWARE and BW OFFSHORE
The main advantage of trading using opposite AXWAY SOFTWARE and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXWAY SOFTWARE position performs unexpectedly, BW 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| AXWAY SOFTWARE vs. The Hanover Insurance | AXWAY SOFTWARE vs. Regions Financial | AXWAY SOFTWARE vs. NEWELL RUBBERMAID | AXWAY SOFTWARE vs. OAKTRSPECLENDNEW |
| BW OFFSHORE vs. Zurich Insurance Group | BW OFFSHORE vs. NIPPON MEAT PACKERS | BW OFFSHORE vs. PT Indofood Sukses | BW OFFSHORE vs. JJ SNACK FOODS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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