Correlation Between Shandong Mining and Bomesc Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Shandong Mining 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 Shandong Mining with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Bomesc Offshore.
Diversification Opportunities for Shandong Mining and Bomesc Offshore
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Bomesc is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery 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 Shandong Mining 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Shandong Mining and Bomesc Offshore
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 2.18 times more return on investment than Bomesc Offshore. However, Shandong Mining is 2.18 times more volatile than Bomesc Offshore Engineering. It trades about 0.08 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.0 per unit of risk. If you would invest 383.00 in Shandong Mining Machinery on October 23, 2024 and sell it today you would earn a total of 18.00 from holding Shandong Mining Machinery or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Shandong Mining Machinery |
| Bomesc Offshore Engi |
Shandong Mining and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Bomesc Offshore
The main advantage of trading using opposite Shandong Mining and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining 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.| Shandong Mining vs. Agricultural Bank of | Shandong Mining vs. Industrial and Commercial | Shandong Mining vs. Bank of China | Shandong Mining vs. China Construction Bank |
| Bomesc Offshore vs. Ciwen Media Co | Bomesc Offshore vs. Shuhua Sports Co | Bomesc Offshore vs. China World Trade | Bomesc Offshore vs. Beijing Enlight Media |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |