Correlation Between BOS BETTER and BW LPG
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and BW LPG 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 BOS BETTER and BW LPG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and BW LPG Limited, you can compare the effects of market volatilities on BOS BETTER and BW LPG 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 BOS BETTER with a short position of BW LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and BW LPG.
Diversification Opportunities for BOS BETTER and BW LPG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and BW9 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and BW LPG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW LPG Limited and BOS BETTER 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 BOS BETTER ONLINE are associated (or correlated) with BW LPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW LPG Limited has no effect on the direction of BOS BETTER i.e., BOS BETTER and BW LPG go up and down completely randomly.
Pair Corralation between BOS BETTER and BW LPG
If you would invest 471.00 in BW LPG Limited on August 30, 2024 and sell it today you would earn a total of 765.00 from holding BW LPG Limited or generate 162.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. BW LPG Limited
Performance |
| Timeline |
| BOS BETTER ONLINE |
| BW LPG Limited |
BOS BETTER and BW LPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and BW LPG
The main advantage of trading using opposite BOS BETTER and BW LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, BW LPG 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 LPG will offset losses from the drop in BW LPG's long position.| BOS BETTER vs. Apple Inc | BOS BETTER vs. Apple Inc | BOS BETTER vs. Superior Plus Corp | BOS BETTER vs. SIVERS SEMICONDUCTORS AB |
| BW LPG vs. ZANAGA IRON ORE | BW LPG vs. NIPPON STEEL SPADR | BW LPG vs. ZURICH INSURANCE GROUP | BW LPG vs. Safety Insurance Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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