Correlation Between BW Offshore and Microsoft
Can any of the company-specific risk be diversified away by investing in both BW Offshore and Microsoft 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 Microsoft 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 Microsoft, you can compare the effects of market volatilities on BW Offshore and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Microsoft.
Diversification Opportunities for BW Offshore and Microsoft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BGSWF and Microsoft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore Limited and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of BW Offshore i.e., BW Offshore and Microsoft go up and down completely randomly.
Pair Corralation between BW Offshore and Microsoft
If you would invest 28,019 in Microsoft on December 30, 2023 and sell it today you would earn a total of 14,053 from holding Microsoft or generate 50.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
BW Offshore Limited vs. Microsoft
Performance |
Timeline |
BW Offshore Limited |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Microsoft |
BW Offshore and Microsoft Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BW Offshore and Microsoft
The main advantage of trading using opposite BW Offshore and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.BW Offshore vs. Vacasa Inc | BW Offshore vs. NetSol Technologies | BW Offshore vs. Uber Technologies | BW Offshore vs. Qualys Inc |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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