Correlation Between Grand Vision and BW Offshore

Can any of the company-specific risk be diversified away by investing in both Grand Vision 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 Grand Vision and BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grand Vision Media and BW Offshore, you can compare the effects of market volatilities on Grand Vision 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 Grand Vision with a short position of BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and BW Offshore.

Diversification Opportunities for Grand Vision and BW Offshore

-0.62

Correlation Coefficient

Grand Vision  BW Offshore

Excellent diversification

The 3 months correlation between Grand and 0RKH is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and BW Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore and Grand Vision 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 Grand Vision Media 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 has no effect on the direction of Grand Vision i.e., Grand Vision and BW Offshore go up and down completely randomly.

Pair Corralation between Grand Vision and BW Offshore

Assuming the 90 days trading horizon Grand Vision Media is expected to under-perform the BW Offshore. In addition to that, Grand Vision is 1.12 times more volatile than BW Offshore. It trades about -0.11 of its total potential returns per unit of risk. BW Offshore is currently generating about 0.01 per unit of volatility. If you would invest  2,805  in BW Offshore on September 12, 2024 and sell it today you would lose (52.00) from holding BW Offshore or give up 1.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Grand Vision Media  vs.  BW Offshore

Grand Vision Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grand Vision Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

BW Offshore

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BW Offshore are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BW Offshore may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Grand Vision and BW Offshore

The main advantage of trading using opposite Grand Vision and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision 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 Grand Vision Media and BW Offshore 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.

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..