Correlation Between Bomesc Offshore and DO Home
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By analyzing existing cross correlation between Bomesc Offshore Engineering and DO Home Collection, you can compare the effects of market volatilities on Bomesc Offshore and DO Home 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 Bomesc Offshore with a short position of DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and DO Home.
Diversification Opportunities for Bomesc Offshore and DO Home
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bomesc and 002798 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection and Bomesc 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 Bomesc Offshore Engineering are associated (or correlated) with DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and DO Home go up and down completely randomly.
Pair Corralation between Bomesc Offshore and DO Home
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to under-perform the DO Home. But the stock apears to be less risky and, when comparing its historical volatility, Bomesc Offshore Engineering is 1.95 times less risky than DO Home. The stock trades about -0.01 of its potential returns per unit of risk. The DO Home Collection is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 412.00 in DO Home Collection on September 20, 2024 and sell it today you would earn a total of 29.00 from holding DO Home Collection or generate 7.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bomesc Offshore Engineering vs. DO Home Collection
Performance |
Timeline |
Bomesc Offshore Engi |
DO Home Collection |
Bomesc Offshore and DO Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bomesc Offshore and DO Home
The main advantage of trading using opposite Bomesc Offshore and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. NAURA Technology Group | Bomesc Offshore vs. HOB Biotech Group | Bomesc Offshore vs. Ming Yang Smart |
DO Home vs. PetroChina Co Ltd | DO Home vs. China Mobile Limited | DO Home vs. CNOOC Limited | DO Home vs. Ping An Insurance |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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