Correlation Between Intercont Limited and BW LPG

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

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

Diversification Opportunities for Intercont Limited and BW LPG

-0.09

Correlation Coefficient

Intercont Limited  BW LPG

Good diversification

The 3 months correlation between Intercont and BWLP is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Intercont Limited Ordinary and BW LPG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW LPG Limited and Intercont Limited 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 Intercont Limited Ordinary are associated (or correlated) with BW LPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW LPG Limited has no effect on the direction of Intercont Limited i.e., Intercont Limited and BW LPG go up and down completely randomly.

Pair Corralation between Intercont Limited and BW LPG

Considering the 90-day investment horizon Intercont Limited is expected to generate 3.23 times less return on investment than BW LPG. In addition to that, Intercont Limited is 3.29 times more volatile than BW LPG Limited. It trades about 0.02 of its total potential returns per unit of risk. BW LPG Limited is currently generating about 0.19 per unit of volatility. If you would invest  1,009  in BW LPG Limited on May 4, 2025 and sell it today you would earn a total of  316.00  from holding BW LPG Limited or generate 31.32% return on investment over 90 days.

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

Intercont Limited Ordinary  vs.  BW LPG Limited

Intercont Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intercont Limited Ordinary are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Intercont Limited may actually be approaching a critical reversion point that can send shares even higher in September 2025.

BW LPG Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BW LPG Limited are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady essential indicators, BW LPG reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intercont Limited and BW LPG

The main advantage of trading using opposite Intercont Limited and BW LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercont Limited position performs unexpectedly, BW LPG 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 LPG will offset losses from the drop in BW LPG's long position.

The idea behind Intercont Limited Ordinary and BW LPG Limited 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.