Correlation Between Guangzhou Zhujiang and Bomesc Offshore
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Guangzhou Zhujiang 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 Guangzhou Zhujiang with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Bomesc Offshore.
Diversification Opportunities for Guangzhou Zhujiang and Bomesc Offshore
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and Bomesc is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Bomesc Offshore
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.67 times more return on investment than Bomesc Offshore. However, Guangzhou Zhujiang Brewery is 1.5 times less risky than Bomesc Offshore. It trades about 0.02 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.01 per unit of risk. If you would invest 806.00 in Guangzhou Zhujiang Brewery on October 29, 2024 and sell it today you would earn a total of 106.00 from holding Guangzhou Zhujiang Brewery or generate 13.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Bomesc Offshore Engi |
Guangzhou Zhujiang and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Bomesc Offshore
The main advantage of trading using opposite Guangzhou Zhujiang and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang 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.| Guangzhou Zhujiang vs. Guilin Seamild Foods | Guangzhou Zhujiang vs. Tieling Newcity Investment | Guangzhou Zhujiang vs. Great Sun Foods Co | Guangzhou Zhujiang vs. Qingdao Foods Co |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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