Correlation Between ZINC MEDIA and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both ZINC MEDIA and BW 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 ZINC MEDIA and BW OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZINC MEDIA GR and BW OFFSHORE LTD, you can compare the effects of market volatilities on ZINC MEDIA and BW 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 ZINC MEDIA with a short position of BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINC MEDIA and BW OFFSHORE.
Diversification Opportunities for ZINC MEDIA and BW OFFSHORE
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZINC and XY81 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ZINC MEDIA GR and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD and ZINC MEDIA 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 ZINC MEDIA GR are associated (or correlated) with BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of ZINC MEDIA i.e., ZINC MEDIA and BW OFFSHORE go up and down completely randomly.
Pair Corralation between ZINC MEDIA and BW OFFSHORE
Assuming the 90 days trading horizon ZINC MEDIA GR is expected to under-perform the BW OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, ZINC MEDIA GR is 1.95 times less risky than BW OFFSHORE. The stock trades about -0.26 of its potential returns per unit of risk. The BW OFFSHORE LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 232.00 in BW OFFSHORE LTD on August 29, 2024 and sell it today you would earn a total of 12.00 from holding BW OFFSHORE LTD or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
ZINC MEDIA GR vs. BW OFFSHORE LTD
Performance |
| Timeline |
| ZINC MEDIA GR |
| BW OFFSHORE LTD |
ZINC MEDIA and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZINC MEDIA and BW OFFSHORE
The main advantage of trading using opposite ZINC MEDIA and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZINC MEDIA position performs unexpectedly, BW 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| ZINC MEDIA vs. MTI WIRELESS EDGE | ZINC MEDIA vs. Tencent Music Entertainment | ZINC MEDIA vs. JLT MOBILE PUTER | ZINC MEDIA vs. Mobilezone Holding AG |
| BW OFFSHORE vs. NOV Inc | BW OFFSHORE vs. Superior Plus Corp | BW OFFSHORE vs. NMI Holdings | BW OFFSHORE vs. SIVERS SEMICONDUCTORS AB |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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