Correlation Between BW Offshore and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both BW Offshore and Nok Airlines 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 Nok Airlines 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 Nok Airlines Public, you can compare the effects of market volatilities on BW Offshore and Nok Airlines 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 Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Nok Airlines.
Diversification Opportunities for BW Offshore and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BWOFY and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore Limited and Nok Airlines Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines Public 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 Nok Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nok Airlines Public has no effect on the direction of BW Offshore i.e., BW Offshore and Nok Airlines go up and down completely randomly.
Pair Corralation between BW Offshore and Nok Airlines
If you would invest 459.00 in BW Offshore Limited on September 26, 2024 and sell it today you would earn a total of 96.00 from holding BW Offshore Limited or generate 20.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 80.85% |
Values | Daily Returns |
BW Offshore Limited vs. Nok Airlines Public
Performance |
Timeline |
BW Offshore Limited |
Nok Airlines Public |
BW Offshore and Nok Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BW Offshore and Nok Airlines
The main advantage of trading using opposite BW Offshore and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore position performs unexpectedly, Nok Airlines 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 Nok Airlines will offset losses from the drop in Nok Airlines' long position.BW Offshore vs. Brandywine Realty Trust | BW Offshore vs. Reservoir Media | BW Offshore vs. Primo Brands | BW Offshore vs. Pinterest |
Nok Airlines vs. GameStop Corp | Nok Airlines vs. Vita Coco | Nok Airlines vs. Chester Mining | Nok Airlines vs. Fomento Economico Mexicano |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |