Correlation Between BW OFFSHORE and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both BW OFFSHORE and EIDESVIK 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 BW OFFSHORE and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on BW OFFSHORE and EIDESVIK 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 BW OFFSHORE with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW OFFSHORE and EIDESVIK OFFSHORE.
Diversification Opportunities for BW OFFSHORE and EIDESVIK OFFSHORE
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XY81 and EIDESVIK is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding BW OFFSHORE LTD and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of BW OFFSHORE i.e., BW OFFSHORE and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between BW OFFSHORE and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon BW OFFSHORE LTD is expected to generate 1.18 times more return on investment than EIDESVIK OFFSHORE. However, BW OFFSHORE is 1.18 times more volatile than EIDESVIK OFFSHORE NK. It trades about 0.02 of its potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about -0.11 per unit of risk. If you would invest 236.00 in BW OFFSHORE LTD on August 28, 2024 and sell it today you would earn a total of 4.00 from holding BW OFFSHORE LTD or generate 1.69% 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. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| BW OFFSHORE LTD |
| EIDESVIK OFFSHORE |
BW OFFSHORE and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW OFFSHORE and EIDESVIK OFFSHORE
The main advantage of trading using opposite BW OFFSHORE and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW OFFSHORE position performs unexpectedly, EIDESVIK 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| BW OFFSHORE vs. BORR DRILLING NEW | BW OFFSHORE vs. CI GAMES SA | BW OFFSHORE vs. HOCHSCHILD MINING | BW OFFSHORE vs. TSOGO SUN GAMING |
| EIDESVIK OFFSHORE vs. MOVIE GAMES SA | EIDESVIK OFFSHORE vs. Townsquare Media | EIDESVIK OFFSHORE vs. Flutter Entertainment PLC | EIDESVIK OFFSHORE vs. RCS MediaGroup SpA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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