Correlation Between Xiangyang Automobile and Bomesc Offshore
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Xiangyang 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 Xiangyang Automobile with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Bomesc Offshore.
Diversification Opportunities for Xiangyang Automobile and Bomesc Offshore
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyang and Bomesc is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing 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 Xiangyang 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 Xiangyang Automobile Bearing 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 Xiangyang Automobile i.e., Xiangyang Automobile and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Bomesc Offshore
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to under-perform the Bomesc Offshore. In addition to that, Xiangyang Automobile is 1.98 times more volatile than Bomesc Offshore Engineering. It trades about -0.01 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.03 per unit of volatility. If you would invest 1,190 in Bomesc Offshore Engineering on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Bomesc Offshore Engineering or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Xiangyang Automobile |
| Bomesc Offshore Engi |
Xiangyang Automobile and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Bomesc Offshore
The main advantage of trading using opposite Xiangyang Automobile and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang 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.| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
| Bomesc Offshore vs. Bangyan Technology Co | Bomesc Offshore vs. Tsingtao Brewery Co | Bomesc Offshore vs. Sichuan Teway Food | Bomesc Offshore vs. Hubei Forbon Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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