Correlation Between Babcock Wilcox and SIMPPLE
Can any of the company-specific risk be diversified away by investing in both Babcock Wilcox and SIMPPLE 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 Babcock Wilcox and SIMPPLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Babcock Wilcox Enterprises and SIMPPLE LTD Ordinary, you can compare the effects of market volatilities on Babcock Wilcox and SIMPPLE 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 Babcock Wilcox with a short position of SIMPPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Babcock Wilcox and SIMPPLE.
Diversification Opportunities for Babcock Wilcox and SIMPPLE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Babcock and SIMPPLE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Babcock Wilcox Enterprises and SIMPPLE LTD Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMPPLE LTD Ordinary and Babcock Wilcox 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 Babcock Wilcox Enterprises are associated (or correlated) with SIMPPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMPPLE LTD Ordinary has no effect on the direction of Babcock Wilcox i.e., Babcock Wilcox and SIMPPLE go up and down completely randomly.
Pair Corralation between Babcock Wilcox and SIMPPLE
If you would invest 114.00 in Babcock Wilcox Enterprises on September 9, 2024 and sell it today you would earn a total of 79.00 from holding Babcock Wilcox Enterprises or generate 69.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Babcock Wilcox Enterprises vs. SIMPPLE LTD Ordinary
Performance |
Timeline |
Babcock Wilcox Enter |
SIMPPLE LTD Ordinary |
Babcock Wilcox and SIMPPLE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Babcock Wilcox and SIMPPLE
The main advantage of trading using opposite Babcock Wilcox and SIMPPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Babcock Wilcox position performs unexpectedly, SIMPPLE 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 SIMPPLE will offset losses from the drop in SIMPPLE's long position.Babcock Wilcox vs. Enerpac Tool Group | Babcock Wilcox vs. Gorman Rupp | Babcock Wilcox vs. Crane Company | Babcock Wilcox vs. Franklin Electric Co |
SIMPPLE vs. Tianjin Capital Environmental | SIMPPLE vs. Sabra Healthcare REIT | SIMPPLE vs. Nasdaq Inc | SIMPPLE vs. Ultra Clean Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |