Correlation Between Siriuspoint and BW Offshore
Can any of the company-specific risk be diversified away by investing in both Siriuspoint 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 Siriuspoint and BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and BW Offshore Limited, you can compare the effects of market volatilities on Siriuspoint 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 Siriuspoint with a short position of BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and BW Offshore.
Diversification Opportunities for Siriuspoint and BW Offshore
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siriuspoint and BWOFY is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint 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 Siriuspoint 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 Siriuspoint 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 Siriuspoint i.e., Siriuspoint and BW Offshore go up and down completely randomly.
Pair Corralation between Siriuspoint and BW Offshore
Given the investment horizon of 90 days Siriuspoint is expected to generate 1.36 times more return on investment than BW Offshore. However, Siriuspoint is 1.36 times more volatile than BW Offshore Limited. It trades about 0.11 of its potential returns per unit of risk. BW Offshore Limited is currently generating about 0.04 per unit of risk. If you would invest 587.00 in Siriuspoint on September 5, 2024 and sell it today you would earn a total of 969.00 from holding Siriuspoint or generate 165.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.98% |
| Values | Daily Returns |
Siriuspoint vs. BW Offshore Limited
Performance |
| Timeline |
| Siriuspoint |
| BW Offshore Limited |
Siriuspoint and BW Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and BW Offshore
The main advantage of trading using opposite Siriuspoint and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint 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.| Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. SCOR PK | Siriuspoint vs. Aquagold International | Siriuspoint vs. Thrivent High Yield |
| BW Offshore vs. Siriuspoint | BW Offshore vs. NI Holdings | BW Offshore vs. Citizens | BW Offshore vs. Palomar Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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