Correlation Between Panther Metals and BW Offshore
Can any of the company-specific risk be diversified away by investing in both Panther Metals 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 Panther Metals and BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and BW Offshore, you can compare the effects of market volatilities on Panther Metals 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 Panther Metals with a short position of BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and BW Offshore.
Diversification Opportunities for Panther Metals and BW Offshore
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panther and 0RKH is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and BW Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore and Panther Metals 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 Panther Metals PLC 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 Panther Metals i.e., Panther Metals and BW Offshore go up and down completely randomly.
Pair Corralation between Panther Metals and BW Offshore
Assuming the 90 days trading horizon Panther Metals PLC is expected to under-perform the BW Offshore. In addition to that, Panther Metals is 3.2 times more volatile than BW Offshore. It trades about -0.26 of its total potential returns per unit of risk. BW Offshore is currently generating about 0.13 per unit of volatility. If you would invest 2,788 in BW Offshore on October 30, 2024 and sell it today you would earn a total of 282.00 from holding BW Offshore or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panther Metals PLC vs. BW Offshore
Performance |
| Timeline |
| Panther Metals PLC |
| BW Offshore |
Panther Metals and BW Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and BW Offshore
The main advantage of trading using opposite Panther Metals and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals 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.| Panther Metals vs. Berner Kantonalbank AG | Panther Metals vs. Moneta Money Bank | Panther Metals vs. Sydbank | Panther Metals vs. Sabre Insurance Group |
| BW Offshore vs. Sartorius Stedim Biotech | BW Offshore vs. Ashtead Technology Holdings | BW Offshore vs. Electronic Arts | BW Offshore vs. Eneraqua Technologies PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |