Correlation Between CHIBA BANK and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both CHIBA BANK and BW OFFSHORE 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 CHIBA BANK and BW OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHIBA BANK and BW OFFSHORE LTD, you can compare the effects of market volatilities on CHIBA BANK and BW OFFSHORE 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 CHIBA BANK with a short position of BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIBA BANK and BW OFFSHORE.
Diversification Opportunities for CHIBA BANK and BW OFFSHORE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHIBA and XY81 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding CHIBA BANK and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD and CHIBA BANK 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 CHIBA BANK are associated (or correlated) with BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of CHIBA BANK i.e., CHIBA BANK and BW OFFSHORE go up and down completely randomly.
Pair Corralation between CHIBA BANK and BW OFFSHORE
Assuming the 90 days trading horizon CHIBA BANK is expected to generate 0.95 times more return on investment than BW OFFSHORE. However, CHIBA BANK is 1.05 times less risky than BW OFFSHORE. It trades about 0.04 of its potential returns per unit of risk. BW OFFSHORE LTD is currently generating about 0.03 per unit of risk. If you would invest 575.00 in CHIBA BANK on September 5, 2024 and sell it today you would earn a total of 240.00 from holding CHIBA BANK or generate 41.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CHIBA BANK vs. BW OFFSHORE LTD
Performance |
| Timeline |
| CHIBA BANK |
| BW OFFSHORE LTD |
CHIBA BANK and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHIBA BANK and BW OFFSHORE
The main advantage of trading using opposite CHIBA BANK and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIBA BANK position performs unexpectedly, BW OFFSHORE 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 OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| CHIBA BANK vs. TOTAL GABON | CHIBA BANK vs. Walgreens Boots Alliance | CHIBA BANK vs. Peak Resources Limited |
| BW OFFSHORE vs. Superior Plus Corp | BW OFFSHORE vs. NMI Holdings | BW OFFSHORE vs. Origin Agritech | BW OFFSHORE vs. SIVERS SEMICONDUCTORS AB |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |