Correlation Between One Media and BW Offshore
Can any of the company-specific risk be diversified away by investing in both One Media 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 One Media and BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Media iP and BW Offshore, you can compare the effects of market volatilities on One Media 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 One Media with a short position of BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and BW Offshore.
Diversification Opportunities for One Media and BW Offshore
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between One and 0RKH is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP and BW Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore and One Media 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 One Media iP 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 has no effect on the direction of One Media i.e., One Media and BW Offshore go up and down completely randomly.
Pair Corralation between One Media and BW Offshore
Assuming the 90 days trading horizon One Media iP is expected to under-perform the BW Offshore. In addition to that, One Media is 1.45 times more volatile than BW Offshore. It trades about -0.02 of its total potential returns per unit of risk. BW Offshore is currently generating about 0.0 per unit of volatility. If you would invest 2,824 in BW Offshore on September 3, 2024 and sell it today you would lose (116.00) from holding BW Offshore or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Media iP vs. BW Offshore
Performance |
| Timeline |
| One Media iP |
| BW Offshore |
One Media and BW Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and BW Offshore
The main advantage of trading using opposite One Media and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media 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.| One Media vs. Intuitive Investments Group | One Media vs. European Metals Holdings | One Media vs. Athelney Trust plc | One Media vs. Invesco Health Care |
| BW Offshore vs. Catalyst Media Group | BW Offshore vs. CATLIN GROUP | BW Offshore vs. RTW Venture Fund | BW Offshore vs. Secure Property Development |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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