Correlation Between EvoAir Holdings and BW Offshore
Can any of the company-specific risk be diversified away by investing in both EvoAir Holdings 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 EvoAir Holdings and BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EvoAir Holdings and BW Offshore Limited, you can compare the effects of market volatilities on EvoAir Holdings 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 EvoAir Holdings with a short position of BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of EvoAir Holdings and BW Offshore.
Diversification Opportunities for EvoAir Holdings and BW Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EvoAir and BWOFY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EvoAir Holdings and BW Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore Limited and EvoAir Holdings 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 EvoAir Holdings 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 Limited has no effect on the direction of EvoAir Holdings i.e., EvoAir Holdings and BW Offshore go up and down completely randomly.
Pair Corralation between EvoAir Holdings and BW Offshore
Given the investment horizon of 90 days EvoAir Holdings is expected to generate 4.15 times less return on investment than BW Offshore. But when comparing it to its historical volatility, EvoAir Holdings is 6.16 times less risky than BW Offshore. It trades about 0.06 of its potential returns per unit of risk. BW Offshore Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 433.00 in BW Offshore Limited on November 3, 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 | 100.0% |
| Values | Daily Returns |
EvoAir Holdings vs. BW Offshore Limited
Performance |
| Timeline |
| EvoAir Holdings |
| BW Offshore Limited |
EvoAir Holdings and BW Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EvoAir Holdings and BW Offshore
The main advantage of trading using opposite EvoAir Holdings and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EvoAir Holdings 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.| EvoAir Holdings vs. Verde Clean Fuels | EvoAir Holdings vs. US Global Investors | EvoAir Holdings vs. Capital Clean Energy | EvoAir Holdings vs. China Clean Energy |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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