Correlation Between BW Offshore and 023135CN4
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By analyzing existing cross correlation between BW Offshore Limited and AMZN 46 01 DEC 25, you can compare the effects of market volatilities on BW Offshore and 023135CN4 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 023135CN4. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and 023135CN4.
Diversification Opportunities for BW Offshore and 023135CN4
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BWOFY and 023135CN4 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore Limited and AMZN 46 01 DEC 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMZN 46 01 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 023135CN4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMZN 46 01 has no effect on the direction of BW Offshore i.e., BW Offshore and 023135CN4 go up and down completely randomly.
Pair Corralation between BW Offshore and 023135CN4
Assuming the 90 days horizon BW Offshore Limited is expected to generate 6.42 times more return on investment than 023135CN4. However, BW Offshore is 6.42 times more volatile than AMZN 46 01 DEC 25. It trades about 0.07 of its potential returns per unit of risk. AMZN 46 01 DEC 25 is currently generating about -0.01 per unit of risk. If you would invest 411.00 in BW Offshore Limited on September 1, 2024 and sell it today you would earn a total of 144.00 from holding BW Offshore Limited or generate 35.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
BW Offshore Limited vs. AMZN 46 01 DEC 25
Performance |
| Timeline |
| BW Offshore Limited |
| AMZN 46 01 |
BW Offshore and 023135CN4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW Offshore and 023135CN4
The main advantage of trading using opposite BW Offshore and 023135CN4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore position performs unexpectedly, 023135CN4 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 023135CN4 will offset losses from the drop in 023135CN4's long position.| BW Offshore vs. Legacy Education | BW Offshore vs. Apple Inc | BW Offshore vs. NVIDIA | BW Offshore vs. Microsoft |
| 023135CN4 vs. Codexis | 023135CN4 vs. Kaiser Aluminum | 023135CN4 vs. Chemours Co | 023135CN4 vs. Hudson 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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