Correlation Between BW Offshore and Weidai
Can any of the company-specific risk be diversified away by investing in both BW Offshore and Weidai 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 Weidai 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 Weidai, you can compare the effects of market volatilities on BW Offshore and Weidai 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 Weidai. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Weidai.
Diversification Opportunities for BW Offshore and Weidai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BWOFY and Weidai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore Limited and Weidai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weidai 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 Weidai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weidai has no effect on the direction of BW Offshore i.e., BW Offshore and Weidai go up and down completely randomly.
Pair Corralation between BW Offshore and Weidai
If you would invest 433.00 in BW Offshore Limited on December 2, 2024 and sell it today you would earn a total of 68.00 from holding BW Offshore Limited or generate 15.7% 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. Weidai
Performance |
| Timeline |
| BW Offshore Limited |
| Weidai |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BW Offshore and Weidai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW Offshore and Weidai
The main advantage of trading using opposite BW Offshore and Weidai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore position performs unexpectedly, Weidai 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 Weidai will offset losses from the drop in Weidai's long position.| BW Offshore vs. Corning Incorporated | BW Offshore vs. Insteel Industries | BW Offshore vs. Alvotech | BW Offshore vs. POSCO Holdings |
| Weidai vs. CVS Health Corp | Weidai vs. Sphere Entertainment Co | Weidai vs. Zhihu Inc ADR | Weidai vs. PetMed Express |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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