Correlation Between Solstad Offshore and BW Offshore
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore 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 Solstad Offshore and BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstad Offshore ASA and BW Offshore Limited, you can compare the effects of market volatilities on Solstad Offshore 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 Solstad Offshore with a short position of BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and BW Offshore.
Diversification Opportunities for Solstad Offshore and BW Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solstad and BWOFY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and BW Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore Limited and Solstad Offshore 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 Solstad Offshore ASA 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 Limited has no effect on the direction of Solstad Offshore i.e., Solstad Offshore and BW Offshore go up and down completely randomly.
Pair Corralation between Solstad Offshore and BW Offshore
If you would invest 461.00 in BW Offshore Limited on September 1, 2024 and sell it today you would earn a total of 94.00 from holding BW Offshore Limited or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Solstad Offshore ASA vs. BW Offshore Limited
Performance |
| Timeline |
| Solstad Offshore ASA |
| BW Offshore Limited |
Solstad Offshore and BW Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and BW Offshore
The main advantage of trading using opposite Solstad Offshore and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore 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.| Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. AP Moeller Maersk AS | Solstad Offshore vs. AP Mller | Solstad Offshore vs. COSCO SHIPPING Holdings |
| BW Offshore vs. Legacy Education | BW Offshore vs. Apple Inc | BW Offshore vs. NVIDIA | BW Offshore vs. Microsoft |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |