Correlation Between BW Offshore and NetMed
Can any of the company-specific risk be diversified away by investing in both BW Offshore and NetMed 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 Offshore and NetMed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW Offshore Limited and NetMed Inc, you can compare the effects of market volatilities on BW Offshore and NetMed 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 Offshore with a short position of NetMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and NetMed.
Diversification Opportunities for BW Offshore and NetMed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BWOFY and NetMed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore Limited and NetMed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetMed Inc and BW Offshore 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 Offshore Limited are associated (or correlated) with NetMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetMed Inc has no effect on the direction of BW Offshore i.e., BW Offshore and NetMed go up and down completely randomly.
Pair Corralation between BW Offshore and NetMed
If you would invest (100.00) in NetMed Inc on December 1, 2024 and sell it today you would earn a total of 100.00 from holding NetMed Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BW Offshore Limited vs. NetMed Inc
Performance |
| Timeline |
| BW Offshore Limited |
| NetMed Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BW Offshore and NetMed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW Offshore and NetMed
The main advantage of trading using opposite BW Offshore and NetMed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore position performs unexpectedly, NetMed 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 NetMed will offset losses from the drop in NetMed's long position.| BW Offshore vs. Jerash Holdings | BW Offshore vs. Genesco | BW Offshore vs. Figs Inc | BW Offshore vs. Sapiens International |
| NetMed vs. Cirrus Logic | NetMed vs. Allient | NetMed vs. Portillos | NetMed vs. Northstar Clean Technologies |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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