Correlation Between BW OFFSHORE and Nexstar Media
Can any of the company-specific risk be diversified away by investing in both BW OFFSHORE and Nexstar Media 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 Nexstar Media 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 Nexstar Media Group, you can compare the effects of market volatilities on BW OFFSHORE and Nexstar Media 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 Nexstar Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW OFFSHORE and Nexstar Media.
Diversification Opportunities for BW OFFSHORE and Nexstar Media
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XY81 and Nexstar is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding BW OFFSHORE LTD and Nexstar Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Media Group 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 Nexstar Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Media Group has no effect on the direction of BW OFFSHORE i.e., BW OFFSHORE and Nexstar Media go up and down completely randomly.
Pair Corralation between BW OFFSHORE and Nexstar Media
Assuming the 90 days trading horizon BW OFFSHORE LTD is expected to generate 1.14 times more return on investment than Nexstar Media. However, BW OFFSHORE is 1.14 times more volatile than Nexstar Media Group. It trades about 0.04 of its potential returns per unit of risk. Nexstar Media Group is currently generating about 0.01 per unit of risk. If you would invest 195.00 in BW OFFSHORE LTD on October 11, 2024 and sell it today you would earn a total of 70.00 from holding BW OFFSHORE LTD or generate 35.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
BW OFFSHORE LTD vs. Nexstar Media Group
Performance |
| Timeline |
| BW OFFSHORE LTD |
| Nexstar Media Group |
BW OFFSHORE and Nexstar Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BW OFFSHORE and Nexstar Media
The main advantage of trading using opposite BW OFFSHORE and Nexstar Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW OFFSHORE position performs unexpectedly, Nexstar Media 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 Nexstar Media will offset losses from the drop in Nexstar Media's long position.| BW OFFSHORE vs. COFCO Joycome Foods | BW OFFSHORE vs. CVR Medical Corp | BW OFFSHORE vs. GLOBUS MEDICAL A | BW OFFSHORE vs. TYSON FOODS A |
| Nexstar Media vs. Zijin Mining Group | Nexstar Media vs. Perseus Mining Limited | Nexstar Media vs. FIREWEED METALS P | Nexstar Media vs. BW OFFSHORE LTD |
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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