Correlation Between BW OFFSHORE and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both BW OFFSHORE and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on BW OFFSHORE and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW OFFSHORE and GAMESTOP.
Diversification Opportunities for BW OFFSHORE and GAMESTOP
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between XY81 and GAMESTOP is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding BW OFFSHORE LTD and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of BW OFFSHORE i.e., BW OFFSHORE and GAMESTOP go up and down completely randomly.
Pair Corralation between BW OFFSHORE and GAMESTOP
Assuming the 90 days trading horizon BW OFFSHORE LTD is expected to under-perform the GAMESTOP. But the stock apears to be less risky and, when comparing its historical volatility, BW OFFSHORE LTD is 1.18 times less risky than GAMESTOP. The stock trades about -0.04 of its potential returns per unit of risk. The GAMESTOP is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,028 in GAMESTOP on September 1, 2024 and sell it today you would earn a total of 674.00 from holding GAMESTOP or generate 33.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BW OFFSHORE LTD vs. GAMESTOP
Performance |
| Timeline |
| BW OFFSHORE LTD |
| GAMESTOP |
BW OFFSHORE and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW OFFSHORE and GAMESTOP
The main advantage of trading using opposite BW OFFSHORE and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW OFFSHORE position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP'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 |
| GAMESTOP vs. SIVERS SEMICONDUCTORS AB | GAMESTOP vs. Darden Restaurants | GAMESTOP vs. Reliance Steel Aluminum | GAMESTOP vs. Q2M Managementberatung AG |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |