Correlation Between SilverBow Resources and WT Offshore

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Can any of the company-specific risk be diversified away by investing in both SilverBow Resources and WT 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 SilverBow Resources and WT Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SilverBow Resources and WT Offshore, you can compare the effects of market volatilities on SilverBow Resources and WT 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 SilverBow Resources with a short position of WT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverBow Resources and WT Offshore.

Diversification Opportunities for SilverBow Resources and WT Offshore

SilverBowWTIDiversified AwaySilverBowWTIDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between SilverBow and WTI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SilverBow Resources and WT Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT Offshore and SilverBow Resources 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 SilverBow Resources are associated (or correlated) with WT Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT Offshore has no effect on the direction of SilverBow Resources i.e., SilverBow Resources and WT Offshore go up and down completely randomly.

Pair Corralation between SilverBow Resources and WT Offshore

If you would invest (100.00) in SilverBow Resources on November 21, 2024 and sell it today you would earn a total of  100.00  from holding SilverBow Resources or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

SilverBow Resources  vs.  WT Offshore

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -35-30-25-20-15-10-5
JavaScript chart by amCharts 3.21.15SBOW WTI
       Timeline  
SilverBow Resources 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SilverBow Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, SilverBow Resources is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
WT Offshore 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days WT Offshore has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.41.51.61.71.81.92

SilverBow Resources and WT Offshore Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.010.020.030.04
JavaScript chart by amCharts 3.21.15SBOW WTI
       Returns  

Pair Trading with SilverBow Resources and WT Offshore

The main advantage of trading using opposite SilverBow Resources and WT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverBow Resources position performs unexpectedly, WT 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 WT Offshore will offset losses from the drop in WT Offshore's long position.
The idea behind SilverBow Resources and WT Offshore pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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