BW LPG Correlations

BWLP Stock

18.03 0.14 0.77%

The correlation of BW LPG is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as BW LPG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BW LPG Limited moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Good diversification

The correlation between BW LPG Limited and NYA is -0.18 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding BW LPG Limited and NYA in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.

The ability to find closely correlated positions to BW LPG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BW LPG when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back BW LPG - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling BW LPG Limited to buy it.

Moving together with BWLP Pink Sheet

0.76	SB	Safe Bulkers	Pair Corr
0.71	SB-PC	Safe Bulkers	Pair Corr
0.65	PXSAP	Pyxis Tankers	Pair Corr
0.89	ASC	Ardmore Shpng	Pair Corr
0.95	DAC	Danaos	Pair Corr
0.76	DSX	Diana Shipping inc	Pair Corr
0.9	ECO	Okeanis Eco Tankers	Pair Corr
0.87	GNK	Genco Shipping Trading	Pair Corr
0.92	KEX	Kirby	Pair Corr
0.71	NAT	Nordic American Tankers Earnings Call Today	Pair Corr
0.62	NMM	Navios Maritime Partners	Pair Corr
0.75	SFL	SFL Corporation	Pair Corr
0.8	GASS	StealthGas	Pair Corr
0.92	ZIM	ZIM Integrated Shipping	Pair Corr
0.83	GOGL	Golden Ocean Group	Pair Corr

Moving against BWLP Pink Sheet

0.57

GLBS

Globus Maritime Earnings Call This Week

Pair Corr

Related Correlations Analysis

	OP	SB	SB-PC	SB-PD	EDRY	PXSAP	PXSAW	ESEA	ASC	DAC
OP		0.26	0.47	0.68	-0.4	0.54	-0.45	-0.24	0.11	0.11	OP
SB	0.26		0.61	0.59	0.07	0.77	-0.44	0.49	0.87	0.84	SB
SB-PC	0.47	0.61		0.77	-0.59	0.68	-0.39	0.02	0.57	0.69	SB-PC
SB-PD	0.68	0.59	0.77		-0.53	0.65	-0.53	-0.12	0.45	0.55	SB-PD
EDRY	-0.4	0.07	-0.59	-0.53		-0.11	0.19	0.43	0.08	-0.14	EDRY
PXSAP	0.54	0.77	0.68	0.65	-0.11		-0.38	0.18	0.76	0.73	PXSAP
PXSAW	-0.45	-0.44	-0.39	-0.53	0.19	-0.38		0.05	-0.17	-0.21	PXSAW
ESEA	-0.24	0.49	0.02	-0.12	0.43	0.18	0.05		0.56	0.46	ESEA
ASC	0.11	0.87	0.57	0.45	0.08	0.76	-0.17	0.56		0.95	ASC
DAC	0.11	0.84	0.69	0.55	-0.14	0.73	-0.21	0.46	0.95		DAC
	OP	SB	SB-PC	SB-PD	EDRY	PXSAP	PXSAW	ESEA	ASC	DAC

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

DAC	+ 0.95	ASC
ASC	+ 0.87	SB
DAC	+ 0.84	SB
PXSAP	+ 0.77	SB
SB-PD	+ 0.77	SB-PC
ASC	+ 0.76	PXSAP

High negative correlations

EDRY	- 0.59	SB-PC
PXSAW	- 0.53	SB-PD
EDRY	- 0.53	SB-PD
PXSAW	- 0.45	OP
PXSAW	- 0.44	SB
EDRY	- 0.4	OP

Risk-Adjusted Indicators

There is a big difference between BWLP Pink Sheet performing well and BW LPG Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze BW LPG's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
OP	2.81	0.27	0.08	1.04	3.10	(3.18)	7.41	(5.09)	17.15
SB	1.36	0.32	0.17	0.49	1.46	(1.63)	2.90	(2.76)	9.59
SB-PC	0.45	0.04	0.03	0.27	0.48	(0.54)	1.07	(0.92)	3.22
SB-PD	0.42	0.05	0.03	2.67	0.63	(0.44)	0.92	(0.78)	4.72
EDRY	1.24	0.02	0.00	0.12	1.47	(1.41)	2.40	(2.23)	10.24
PXSAP	0.32	0.05	0.06	0.35	0.30	(0.39)	0.66	(0.78)	2.47
PXSAW	5.94	0.03	0.00	0.01	0.00	0.00	16.96	(13.04)	56.27
ESEA	2.50	0.23	0.08	0.28	2.72	(2.84)	5.83	(4.51)	23.19
ASC	1.63	0.57	0.31	0.56	1.31	(1.86)	3.68	(2.46)	18.79
DAC	0.95	0.27	0.24	0.33	0.80	(1.12)	2.60	(1.30)	5.44

BW LPG Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with BW LPG pink sheet to make a market-neutral strategy. Peer analysis of BW LPG could also be used in its relative valuation, which is a method of valuing BW LPG by comparing valuation metrics with similar companies.

Oceanpal Safe Bulkers Safe Bulkers Safe Bulkers EuroDry Pyxis Tankers Pyxis Tankers Euroseas Ardmore Shpng Danaos American Airlines Group Alcoa Corp Apple Inc Best Buy Co Citigroup

Risk & Return

Correlation

Already Invested in BW LPG Limited?

The danger of trading BW LPG Limited is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of BW LPG is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than BW LPG. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile BW LPG Limited is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

Complementary Tools for BWLP Pink Sheet analysis

When running BW LPG's price analysis, check to measure BW LPG's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy BW LPG is operating at the current time. Most of BW LPG's value examination focuses on studying past and present price action to predict the probability of BW LPG's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BW LPG's price. Additionally, you may evaluate how the addition of BW LPG to your portfolios can decrease your overall portfolio volatility.

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