Correlation Between BW OFFSHORE and CI GAMES
Can any of the company-specific risk be diversified away by investing in both BW OFFSHORE and CI GAMES 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 CI GAMES 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 CI GAMES SA, you can compare the effects of market volatilities on BW OFFSHORE and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW OFFSHORE and CI GAMES.
Diversification Opportunities for BW OFFSHORE and CI GAMES
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between XY81 and CI7 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding BW OFFSHORE LTD and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES SA 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of BW OFFSHORE i.e., BW OFFSHORE and CI GAMES go up and down completely randomly.
Pair Corralation between BW OFFSHORE and CI GAMES
Assuming the 90 days trading horizon BW OFFSHORE LTD is expected to generate 0.94 times more return on investment than CI GAMES. However, BW OFFSHORE LTD is 1.06 times less risky than CI GAMES. It trades about -0.04 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.09 per unit of risk. If you would invest 243.00 in BW OFFSHORE LTD on September 1, 2024 and sell it today you would lose (10.00) from holding BW OFFSHORE LTD or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BW OFFSHORE LTD vs. CI GAMES SA
Performance |
| Timeline |
| BW OFFSHORE LTD |
| CI GAMES SA |
BW OFFSHORE and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW OFFSHORE and CI GAMES
The main advantage of trading using opposite BW OFFSHORE and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW OFFSHORE position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.| BW OFFSHORE vs. Zurich Insurance Group | BW OFFSHORE vs. NIPPON MEAT PACKERS | BW OFFSHORE vs. PT Indofood Sukses | BW OFFSHORE vs. JJ SNACK FOODS |
| CI GAMES vs. PT Bank Maybank | CI GAMES vs. REVO INSURANCE SPA | CI GAMES vs. The Hanover Insurance | CI GAMES vs. Webster Financial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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