Correlation Between Chongqing Changan and Bomesc Offshore
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By analyzing existing cross correlation between Chongqing Changan Automobile and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Chongqing Changan 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 Chongqing Changan with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and Bomesc Offshore.
Diversification Opportunities for Chongqing Changan and Bomesc Offshore
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chongqing and Bomesc is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile 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 Chongqing Changan 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 Chongqing Changan Automobile 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 Chongqing Changan i.e., Chongqing Changan and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Chongqing Changan and Bomesc Offshore
Assuming the 90 days trading horizon Chongqing Changan is expected to generate 1.44 times less return on investment than Bomesc Offshore. In addition to that, Chongqing Changan is 1.23 times more volatile than Bomesc Offshore Engineering. It trades about 0.21 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.38 per unit of volatility. If you would invest 1,238 in Bomesc Offshore Engineering on November 28, 2024 and sell it today you would earn a total of 130.00 from holding Bomesc Offshore Engineering or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Changan Automobile vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Chongqing Changan |
| Bomesc Offshore Engi |
Chongqing Changan and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and Bomesc Offshore
The main advantage of trading using opposite Chongqing Changan and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan 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.| Chongqing Changan vs. Guangdong Qunxing Toys | Chongqing Changan vs. Ningxia Younglight Chemicals | Chongqing Changan vs. Hubei Xingfa Chemicals | Chongqing Changan vs. Nanjing Vishee Medical |
| Bomesc Offshore vs. Shenzhen Centralcon Investment | Bomesc Offshore vs. Hangzhou Minsheng Healthcare | Bomesc Offshore vs. Jiangsu Yueda Investment | Bomesc Offshore vs. Impulse Qingdao Health |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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