Correlation Between Mitsui OSK and BW LPG
Can any of the company-specific risk be diversified away by investing in both Mitsui OSK and BW LPG 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 Mitsui OSK and BW LPG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsui OSK Lines and BW LPG Limited, you can compare the effects of market volatilities on Mitsui OSK and BW LPG 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 Mitsui OSK with a short position of BW LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsui OSK and BW LPG.
Diversification Opportunities for Mitsui OSK and BW LPG
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mitsui and BWLLF is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mitsui OSK Lines and BW LPG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW LPG Limited and Mitsui OSK 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 Mitsui OSK Lines are associated (or correlated) with BW LPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW LPG Limited has no effect on the direction of Mitsui OSK i.e., Mitsui OSK and BW LPG go up and down completely randomly.
Pair Corralation between Mitsui OSK and BW LPG
If you would invest 1,841 in BW LPG Limited on September 2, 2024 and sell it today you would earn a total of 0.00 from holding BW LPG Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Mitsui OSK Lines vs. BW LPG Limited
Performance |
| Timeline |
| Mitsui OSK Lines |
| BW LPG Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mitsui OSK and BW LPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsui OSK and BW LPG
The main advantage of trading using opposite Mitsui OSK and BW LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsui OSK position performs unexpectedly, BW LPG 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 LPG will offset losses from the drop in BW LPG's long position.| Mitsui OSK vs. AP Mller | Mitsui OSK vs. COSCO SHIPPING Holdings | Mitsui OSK vs. Orient Overseas Limited |
| BW LPG vs. Hutchison Port Holdings | BW LPG vs. Kawasaki Kisen Kaisha | BW LPG vs. MPC Container Ships | BW LPG vs. Hapag Lloyd Aktiengesellschaft |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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