Correlation Between CENTURIA OFFICE and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE 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 CENTURIA OFFICE and BW OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CENTURIA OFFICE REIT and BW OFFSHORE LTD, you can compare the effects of market volatilities on CENTURIA OFFICE 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 CENTURIA OFFICE with a short position of BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and BW OFFSHORE.
Diversification Opportunities for CENTURIA OFFICE and BW OFFSHORE
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CENTURIA and XY81 is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT 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 CENTURIA OFFICE 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 CENTURIA OFFICE REIT 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 CENTURIA OFFICE i.e., CENTURIA OFFICE and BW OFFSHORE go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and BW OFFSHORE
Assuming the 90 days horizon CENTURIA OFFICE REIT is expected to generate 0.67 times more return on investment than BW OFFSHORE. However, CENTURIA OFFICE REIT is 1.49 times less risky than BW OFFSHORE. It trades about 0.01 of its potential returns per unit of risk. BW OFFSHORE LTD is currently generating about -0.09 per unit of risk. If you would invest 68.00 in CENTURIA OFFICE REIT on November 5, 2024 and sell it today you would earn a total of 0.00 from holding CENTURIA OFFICE REIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. BW OFFSHORE LTD
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| BW OFFSHORE LTD |
CENTURIA OFFICE and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and BW OFFSHORE
The main advantage of trading using opposite CENTURIA OFFICE and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE 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.| CENTURIA OFFICE vs. MTY Food Group | CENTURIA OFFICE vs. INTERNET INJPADR 1 | CENTURIA OFFICE vs. HEMISPHERE EGY | CENTURIA OFFICE vs. Hemisphere Energy Corp |
| BW OFFSHORE vs. AIR LIQUIDE ADR | BW OFFSHORE vs. Delta Air Lines | BW OFFSHORE vs. NORWEGIAN AIR SHUT | BW OFFSHORE vs. CHINA SOUTHN AIR H |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |