Correlation Between Bayerische Motoren and WT OFFSHORE
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By analyzing existing cross correlation between Bayerische Motoren Werke and WT OFFSHORE, you can compare the effects of market volatilities on Bayerische Motoren and WT 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 Bayerische Motoren with a short position of WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayerische Motoren and WT OFFSHORE.
Diversification Opportunities for Bayerische Motoren and WT OFFSHORE
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bayerische and UWV is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bayerische Motoren Werke and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT OFFSHORE and Bayerische Motoren 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 Bayerische Motoren Werke are associated (or correlated) with WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of Bayerische Motoren i.e., Bayerische Motoren and WT OFFSHORE go up and down completely randomly.
Pair Corralation between Bayerische Motoren and WT OFFSHORE
Assuming the 90 days trading horizon Bayerische Motoren Werke is expected to under-perform the WT OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, Bayerische Motoren Werke is 1.71 times less risky than WT OFFSHORE. The stock trades about -0.1 of its potential returns per unit of risk. The WT OFFSHORE is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 192.00 in WT OFFSHORE on September 2, 2024 and sell it today you would lose (8.00) from holding WT OFFSHORE or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayerische Motoren Werke vs. WT OFFSHORE
Performance |
| Timeline |
| Bayerische Motoren Werke |
| WT OFFSHORE |
Bayerische Motoren and WT OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayerische Motoren and WT OFFSHORE
The main advantage of trading using opposite Bayerische Motoren and WT OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayerische Motoren position performs unexpectedly, WT 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 WT OFFSHORE will offset losses from the drop in WT OFFSHORE's long position.| Bayerische Motoren vs. WT OFFSHORE | Bayerische Motoren vs. Solstad Offshore ASA | Bayerische Motoren vs. SIEM OFFSHORE NEW | Bayerische Motoren vs. LG Electronics |
| WT OFFSHORE vs. SK TELECOM TDADR | WT OFFSHORE vs. Rogers Communications | WT OFFSHORE vs. Highlight Communications AG | WT OFFSHORE vs. Singapore Telecommunications Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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