Correlation Between Schlumberger and BW Offshore
Can any of the company-specific risk be diversified away by investing in both Schlumberger 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 Schlumberger and BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schlumberger NV and BW Offshore Limited, you can compare the effects of market volatilities on Schlumberger 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 Schlumberger with a short position of BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schlumberger and BW Offshore.
Diversification Opportunities for Schlumberger and BW Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schlumberger and BGSWF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Schlumberger NV and BW Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore Limited and Schlumberger 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 Schlumberger NV 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 Limited has no effect on the direction of Schlumberger i.e., Schlumberger and BW Offshore go up and down completely randomly.
Pair Corralation between Schlumberger and BW Offshore
If you would invest (100.00) in BW Offshore Limited on January 24, 2024 and sell it today you would earn a total of 100.00 from holding BW Offshore Limited or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Schlumberger NV vs. BW Offshore Limited
Performance |
Timeline |
Schlumberger NV |
BW Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Schlumberger and BW Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Schlumberger and BW Offshore
The main advantage of trading using opposite Schlumberger and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schlumberger 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.The idea behind Schlumberger NV and BW Offshore Limited 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.BW Offshore vs. Arrow Electronics | BW Offshore vs. Summit Materials | BW Offshore vs. Burlington Stores | BW Offshore vs. PVH Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |