Correlation Between Ningbo Homelink and Bomesc Offshore
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Ningbo Homelink and Bomesc 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 Ningbo Homelink with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and Bomesc Offshore.
Diversification Opportunities for Ningbo Homelink and Bomesc Offshore
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Bomesc is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and Bomesc Offshore Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomesc Offshore Engi and Ningbo Homelink 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 Ningbo Homelink Eco iTech are associated (or correlated) with Bomesc Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomesc Offshore Engi has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Ningbo Homelink and Bomesc Offshore
Assuming the 90 days trading horizon Ningbo Homelink Eco iTech is expected to generate 1.22 times more return on investment than Bomesc Offshore. However, Ningbo Homelink is 1.22 times more volatile than Bomesc Offshore Engineering. It trades about 0.09 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about -0.01 per unit of risk. If you would invest 1,645 in Ningbo Homelink Eco iTech on September 20, 2024 and sell it today you would earn a total of 64.00 from holding Ningbo Homelink Eco iTech or generate 3.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ningbo Homelink Eco iTech vs. Bomesc Offshore Engineering
Performance |
Timeline |
Ningbo Homelink Eco |
Bomesc Offshore Engi |
Ningbo Homelink and Bomesc Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ningbo Homelink and Bomesc Offshore
The main advantage of trading using opposite Ningbo Homelink and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, Bomesc 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 Bomesc Offshore will offset losses from the drop in Bomesc Offshore's long position.Ningbo Homelink vs. Zijin Mining Group | Ningbo Homelink vs. Wanhua Chemical Group | Ningbo Homelink vs. Baoshan Iron Steel | Ningbo Homelink vs. Shandong Gold Mining |
Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. NAURA Technology Group | Bomesc Offshore vs. HOB Biotech Group | Bomesc Offshore vs. Ming Yang Smart |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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