Correlation Between Oslo Exchange and BW LPG
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By analyzing existing cross correlation between Oslo Exchange Mutual and BW LPG, you can compare the effects of market volatilities on Oslo Exchange 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 Oslo Exchange with a short position of BW LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oslo Exchange and BW LPG.
Diversification Opportunities for Oslo Exchange and BW LPG
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oslo and BWLPG is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Oslo Exchange Mutual and BW LPG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW LPG and Oslo Exchange 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 Oslo Exchange Mutual 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 has no effect on the direction of Oslo Exchange i.e., Oslo Exchange and BW LPG go up and down completely randomly.
Pair Corralation between Oslo Exchange and BW LPG
Assuming the 90 days trading horizon Oslo Exchange Mutual is expected to generate 0.3 times more return on investment than BW LPG. However, Oslo Exchange Mutual is 3.3 times less risky than BW LPG. It trades about 0.05 of its potential returns per unit of risk. BW LPG is currently generating about -0.03 per unit of risk. If you would invest 137,967 in Oslo Exchange Mutual on August 28, 2024 and sell it today you would earn a total of 2,777 from holding Oslo Exchange Mutual or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oslo Exchange Mutual vs. BW LPG
Performance |
| Timeline |
Oslo Exchange and BW LPG Volatility Contrast
Predicted Return Density |
| Returns |
Oslo Exchange Mutual
Pair trading matchups for Oslo Exchange
BW LPG
Pair trading matchups for BW LPG
Pair Trading with Oslo Exchange and BW LPG
The main advantage of trading using opposite Oslo Exchange and BW LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oslo Exchange 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.| Oslo Exchange vs. Lea Bank ASA | Oslo Exchange vs. Helgeland Sparebank | Oslo Exchange vs. Sunndal Sparebank | Oslo Exchange vs. Xplora Technologies As |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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