Correlation Between BW Offshore and Investor Education

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Can any of the company-specific risk be diversified away by investing in both BW Offshore and Investor Education 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 Investor Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW Offshore Limited and FILTER, you can compare the effects of market volatilities on BW Offshore and Investor Education 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 Investor Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Investor Education.

Diversification Opportunities for BW Offshore and Investor Education

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BGSWF and Investor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore Limited and FILTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor Education 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 Limited are associated (or correlated) with Investor Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor Education has no effect on the direction of BW Offshore i.e., BW Offshore and Investor Education go up and down completely randomly.

Pair Corralation between BW Offshore and Investor Education

If you would invest (100.00) in FILTER on December 30, 2023 and sell it today you would earn a total of  100.00  from holding FILTER or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BW Offshore Limited  vs.  FILTER

 Performance 
       Timeline  
BW Offshore Limited 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days BW Offshore Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BW Offshore is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Investor Education 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days FILTER has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Investor Education is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

BW Offshore and Investor Education Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BW Offshore and Investor Education

The main advantage of trading using opposite BW Offshore and Investor Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore position performs unexpectedly, Investor Education 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 Investor Education will offset losses from the drop in Investor Education long position.
The idea behind BW Offshore Limited and FILTER pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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