Correlation Between BW OFFSHORE and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both BW OFFSHORE and MAGNUM MINING 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 MAGNUM MINING 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 MAGNUM MINING EXP, you can compare the effects of market volatilities on BW OFFSHORE and MAGNUM MINING 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 MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW OFFSHORE and MAGNUM MINING.
Diversification Opportunities for BW OFFSHORE and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XY81 and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BW OFFSHORE LTD and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP 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 MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of BW OFFSHORE i.e., BW OFFSHORE and MAGNUM MINING go up and down completely randomly.
Pair Corralation between BW OFFSHORE and MAGNUM MINING
If you would invest 230.00 in BW OFFSHORE LTD on October 17, 2024 and sell it today you would earn a total of 32.00 from holding BW OFFSHORE LTD or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BW OFFSHORE LTD vs. MAGNUM MINING EXP
Performance |
| Timeline |
| BW OFFSHORE LTD |
| MAGNUM MINING EXP |
BW OFFSHORE and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW OFFSHORE and MAGNUM MINING
The main advantage of trading using opposite BW OFFSHORE and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW OFFSHORE position performs unexpectedly, MAGNUM MINING 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| BW OFFSHORE vs. BANKINTER ADR 2007 | BW OFFSHORE vs. Perdoceo Education | BW OFFSHORE vs. CeoTronics AG | BW OFFSHORE vs. UNIQA INSURANCE GR |
| MAGNUM MINING vs. National Beverage Corp | MAGNUM MINING vs. Texas Roadhouse | MAGNUM MINING vs. MOLSON RS BEVERAGE | MAGNUM MINING vs. BROADWIND ENRGY |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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