Correlation Between Zhejiang Kingland and Bomesc Offshore
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Bomesc Offshore.
Diversification Opportunities for Zhejiang Kingland and Bomesc Offshore
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Bomesc is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline 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 Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Bomesc Offshore
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the Bomesc Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Kingland Pipeline is 1.2 times less risky than Bomesc Offshore. The stock trades about -0.17 of its potential returns per unit of risk. The Bomesc Offshore Engineering is currently generating about 0.03 of returns per unit of risk over similar time horizon. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Zhejiang Kingland |
| Bomesc Offshore Engi |
Zhejiang Kingland and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Bomesc Offshore
The main advantage of trading using opposite Zhejiang Kingland and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. HaiXin Foods Co | Zhejiang Kingland vs. Juewei Food Co | Zhejiang Kingland vs. Gan Yuan Foods | Zhejiang Kingland vs. Great Sun Foods Co |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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