Correlation Between Bomesc Offshore and Harbin Hatou

Can any of the company-specific risk be diversified away by investing in both Bomesc Offshore and Harbin Hatou 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 Bomesc Offshore and Harbin Hatou into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bomesc Offshore Engineering and Harbin Hatou Investment, you can compare the effects of market volatilities on Bomesc Offshore and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Harbin Hatou.

Diversification Opportunities for Bomesc Offshore and Harbin Hatou

-0.31

Correlation Coefficient

Bomesc Offshore  Harbin Hatou

Very good diversification

The 3 months correlation between Bomesc and Harbin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Harbin Hatou go up and down completely randomly.

Pair Corralation between Bomesc Offshore and Harbin Hatou

Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.81 times more return on investment than Harbin Hatou. However, Bomesc Offshore Engineering is 1.24 times less risky than Harbin Hatou. It trades about 0.27 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.13 per unit of risk. If you would invest  1,184  in Bomesc Offshore Engineering on December 24, 2024 and sell it today you would earn a total of  371.00  from holding Bomesc Offshore Engineering or generate 31.33% return on investment over 90 days.

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

Bomesc Offshore Engineering  vs.  Harbin Hatou Investment

Bomesc Offshore Engi

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bomesc Offshore Engineering are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bomesc Offshore sustained solid returns over the last few months and may actually be approaching a breakup point.

Harbin Hatou Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harbin Hatou Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bomesc Offshore and Harbin Hatou

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

The idea behind Bomesc Offshore Engineering and Harbin Hatou Investment 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 CEOs Directory module to screen CEOs from public companies around the world.