Correlation Between BW Offshore and Accelleron Industries

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Can any of the company-specific risk be diversified away by investing in both BW Offshore and Accelleron Industries 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 Accelleron Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BW Offshore and Accelleron Industries AG, you can compare the effects of market volatilities on BW Offshore and Accelleron Industries 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 Accelleron Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of BW Offshore and Accelleron Industries.

Diversification Opportunities for BW Offshore and Accelleron Industries

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between 0RKH and Accelleron is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding BW Offshore and Accelleron Industries AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelleron Industries 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 are associated (or correlated) with Accelleron Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelleron Industries has no effect on the direction of BW Offshore i.e., BW Offshore and Accelleron Industries go up and down completely randomly.

Pair Corralation between BW Offshore and Accelleron Industries

Assuming the 90 days trading horizon BW Offshore is expected to generate 1.45 times more return on investment than Accelleron Industries. However, BW Offshore is 1.45 times more volatile than Accelleron Industries AG. It trades about 0.11 of its potential returns per unit of risk. Accelleron Industries AG is currently generating about -0.09 per unit of risk. If you would invest  3,371  in BW Offshore on September 8, 2025 and sell it today you would earn a total of  464.00  from holding BW Offshore or generate 13.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

BW Offshore  vs.  Accelleron Industries AG

 Performance 
       Timeline  
BW Offshore 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BW Offshore are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, BW Offshore unveiled solid returns over the last few months and may actually be approaching a breakup point.
Accelleron Industries 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Accelleron Industries AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

BW Offshore and Accelleron Industries Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BW Offshore and Accelleron Industries

The main advantage of trading using opposite BW Offshore and Accelleron Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BW Offshore position performs unexpectedly, Accelleron Industries 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 Accelleron Industries will offset losses from the drop in Accelleron Industries' long position.
The idea behind BW Offshore and Accelleron Industries AG 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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