Correlation Between BW OFFSHORE and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both BW OFFSHORE and Grupo Carso 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 BW OFFSHORE and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW OFFSHORE LTD and Grupo Carso SAB, you can compare the effects of market volatilities on BW OFFSHORE and Grupo Carso 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 BW OFFSHORE with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW OFFSHORE and Grupo Carso.
Diversification Opportunities for BW OFFSHORE and Grupo Carso
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XY81 and Grupo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BW OFFSHORE LTD and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB and BW 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 BW OFFSHORE LTD are associated (or correlated) with Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of BW OFFSHORE i.e., BW OFFSHORE and Grupo Carso go up and down completely randomly.
Pair Corralation between BW OFFSHORE and Grupo Carso
Assuming the 90 days trading horizon BW OFFSHORE is expected to generate 2.35 times less return on investment than Grupo Carso. But when comparing it to its historical volatility, BW OFFSHORE LTD is 1.35 times less risky than Grupo Carso. It trades about 0.04 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 241.00 in Grupo Carso SAB on November 9, 2024 and sell it today you would earn a total of 294.00 from holding Grupo Carso SAB or generate 121.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BW OFFSHORE LTD vs. Grupo Carso SAB
Performance |
| Timeline |
| BW OFFSHORE LTD |
| Grupo Carso SAB |
BW OFFSHORE and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW OFFSHORE and Grupo Carso
The main advantage of trading using opposite BW OFFSHORE and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW OFFSHORE position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso's long position.| BW OFFSHORE vs. Playa Hotels Resorts | BW OFFSHORE vs. STRAYER EDUCATION | BW OFFSHORE vs. IDP EDUCATION LTD | BW OFFSHORE vs. Hyatt Hotels |
| Grupo Carso vs. Global Ship Lease | Grupo Carso vs. COMPUTER MODELLING | Grupo Carso vs. Hemisphere Energy Corp | Grupo Carso vs. Lendlease Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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