Correlation Between Guangzhou Tinci and Bomesc Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Tinci Materials and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Guangzhou Tinci 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 Tinci with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Bomesc Offshore.
Diversification Opportunities for Guangzhou Tinci and Bomesc Offshore
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Bomesc is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials 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 Tinci 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 Tinci Materials 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 Tinci i.e., Guangzhou Tinci and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Bomesc Offshore
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Bomesc Offshore. In addition to that, Guangzhou Tinci is 1.26 times more volatile than Bomesc Offshore Engineering. It trades about -0.03 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.02 per unit of volatility. If you would invest 1,197 in Bomesc Offshore Engineering on September 4, 2024 and sell it today you would earn a total of 50.00 from holding Bomesc Offshore Engineering or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Bomesc Offshore Engi |
Guangzhou Tinci and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Bomesc Offshore
The main advantage of trading using opposite Guangzhou Tinci and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci 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 Tinci vs. Chengdu Spaceon Electronics | Guangzhou Tinci vs. China Asset Management | Guangzhou Tinci vs. Anhui Liuguo Chemical | Guangzhou Tinci vs. CICC Fund Management |
| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. Zhejiang HISUN Biomaterials | Bomesc Offshore vs. Kingsignal Technology Co | Bomesc Offshore vs. Ming Yang Smart |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |