Correlation Between BW LPG and SITC International
Can any of the company-specific risk be diversified away by investing in both BW LPG and SITC International 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 LPG and SITC International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW LPG Limited and SITC International Holdings, you can compare the effects of market volatilities on BW LPG and SITC International 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 LPG with a short position of SITC International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW LPG and SITC International.
Diversification Opportunities for BW LPG and SITC International
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between BWLLF and SITC is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding BW LPG Limited and SITC International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITC International and BW LPG 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 LPG Limited are associated (or correlated) with SITC International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITC International has no effect on the direction of BW LPG i.e., BW LPG and SITC International go up and down completely randomly.
Pair Corralation between BW LPG and SITC International
If you would invest 193.00 in SITC International Holdings on August 31, 2024 and sell it today you would earn a total of 45.00 from holding SITC International Holdings or generate 23.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
BW LPG Limited vs. SITC International Holdings
Performance |
| Timeline |
| BW LPG Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SITC International |
BW LPG and SITC International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW LPG and SITC International
The main advantage of trading using opposite BW LPG and SITC International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW LPG position performs unexpectedly, SITC International 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 SITC International will offset losses from the drop in SITC International's long position.| BW LPG vs. Hutchison Port Holdings | BW LPG vs. Kawasaki Kisen Kaisha | BW LPG vs. MPC Container Ships | BW LPG vs. Hapag Lloyd Aktiengesellschaft |
| SITC International vs. Hapag Lloyd Aktiengesellschaft | SITC International vs. Hapag Lloyd Aktiengesellschaft | SITC International vs. AP Moeller Maersk AS | SITC International vs. AP Mller |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |