Correlation Between Opendoor Technologies and BW LPG
Can any of the company-specific risk be diversified away by investing in both Opendoor Technologies 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 Opendoor Technologies and BW LPG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opendoor Technologies and BW LPG Limited, you can compare the effects of market volatilities on Opendoor Technologies 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 Opendoor Technologies with a short position of BW LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opendoor Technologies and BW LPG.
Diversification Opportunities for Opendoor Technologies and BW LPG
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Opendoor and BWLLF is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Opendoor Technologies 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 Opendoor Technologies 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 Opendoor Technologies 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 Opendoor Technologies i.e., Opendoor Technologies and BW LPG go up and down completely randomly.
Pair Corralation between Opendoor Technologies and BW LPG
Given the investment horizon of 90 days Opendoor Technologies is expected to generate 1.61 times more return on investment than BW LPG. However, Opendoor Technologies is 1.61 times more volatile than BW LPG Limited. It trades about 0.02 of its potential returns per unit of risk. BW LPG Limited is currently generating about -0.17 per unit of risk. If you would invest 222.00 in Opendoor Technologies on September 3, 2024 and sell it today you would lose (9.00) from holding Opendoor Technologies or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 13.6% |
| Values | Daily Returns |
Opendoor Technologies vs. BW LPG Limited
Performance |
| Timeline |
| Opendoor Technologies |
| BW LPG Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Opendoor Technologies and BW LPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opendoor Technologies and BW LPG
The main advantage of trading using opposite Opendoor Technologies and BW LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opendoor Technologies 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.| Opendoor Technologies vs. eXp World Holdings | Opendoor Technologies vs. Offerpad Solutions | Opendoor Technologies vs. Re Max Holding | Opendoor Technologies vs. Anywhere Real Estate |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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