Correlation Between Shenzhen SDG and Bomesc Offshore
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By analyzing existing cross correlation between Shenzhen SDG Information and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Shenzhen SDG 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 Shenzhen SDG with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Bomesc Offshore.
Diversification Opportunities for Shenzhen SDG and Bomesc Offshore
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Bomesc is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information 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 Shenzhen SDG 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 Shenzhen SDG Information 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 Shenzhen SDG i.e., Shenzhen SDG and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Bomesc Offshore
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 101.39 times less return on investment than Bomesc Offshore. In addition to that, Shenzhen SDG is 1.45 times more volatile than Bomesc Offshore Engineering. It trades about 0.0 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.22 per unit of volatility. If you would invest 1,154 in Bomesc Offshore Engineering on November 3, 2024 and sell it today you would earn a total of 84.00 from holding Bomesc Offshore Engineering or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Shenzhen SDG Information |
| Bomesc Offshore Engi |
Shenzhen SDG and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Bomesc Offshore
The main advantage of trading using opposite Shenzhen SDG and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG 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.| Shenzhen SDG vs. Guilin Seamild Foods | Shenzhen SDG vs. Qilu Bank Co | Shenzhen SDG vs. Unisplendour Corp | Shenzhen SDG vs. Guosheng Financial Holding |
| Bomesc Offshore vs. Maxvision Technology Corp | Bomesc Offshore vs. Xiamen Goldenhome Co | Bomesc Offshore vs. Fibocom Wireless | Bomesc Offshore vs. Jilin Jlu Communication |
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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