Correlation Between Haima Automobile and Bomesc Offshore
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By analyzing existing cross correlation between Haima Automobile Group and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Haima Automobile 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 Haima Automobile with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Bomesc Offshore.
Diversification Opportunities for Haima Automobile and Bomesc Offshore
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Bomesc is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group 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 Haima Automobile 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 Haima Automobile Group 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 Haima Automobile i.e., Haima Automobile and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Haima Automobile and Bomesc Offshore
Assuming the 90 days trading horizon Haima Automobile is expected to generate 3.34 times less return on investment than Bomesc Offshore. In addition to that, Haima Automobile is 1.44 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 0.01 per unit of volatility. If you would invest 1,233 in Bomesc Offshore Engineering on October 29, 2024 and sell it today you would lose (12.00) from holding Bomesc Offshore Engineering or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Haima Automobile |
| Bomesc Offshore Engi |
Haima Automobile and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Bomesc Offshore
The main advantage of trading using opposite Haima Automobile and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile 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.| Haima Automobile vs. China Longyuan Power | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Guangxi Guiguan Electric | Haima Automobile vs. Yantai North Andre |
| Bomesc Offshore vs. Guilin Seamild Foods | Bomesc Offshore vs. Zhejiang Construction Investment | Bomesc Offshore vs. Postal Savings Bank | Bomesc Offshore vs. Luyin Investment Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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