Correlation Between Bomesc Offshore and Shijiazhuang Tonhe
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on Bomesc Offshore and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Shijiazhuang Tonhe.
Diversification Opportunities for Bomesc Offshore and Shijiazhuang Tonhe
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bomesc and Shijiazhuang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Shijiazhuang Tonhe
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to under-perform the Shijiazhuang Tonhe. But the stock apears to be less risky and, when comparing its historical volatility, Bomesc Offshore Engineering is 1.38 times less risky than Shijiazhuang Tonhe. The stock trades about -0.01 of its potential returns per unit of risk. The Shijiazhuang Tonhe Electronics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,631 in Shijiazhuang Tonhe Electronics on September 20, 2024 and sell it today you would earn a total of 197.00 from holding Shijiazhuang Tonhe Electronics or generate 12.08% 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. Shijiazhuang Tonhe Electronics
Performance |
Timeline |
Bomesc Offshore Engi |
Shijiazhuang Tonhe |
Bomesc Offshore and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bomesc Offshore and Shijiazhuang Tonhe
The main advantage of trading using opposite Bomesc Offshore and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe'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 |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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