Correlation Between Jiangxi Selon and Bomesc Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Selon Industrial and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Jiangxi Selon 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 Jiangxi Selon with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Bomesc Offshore.
Diversification Opportunities for Jiangxi Selon and Bomesc Offshore
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Bomesc is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial 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 Jiangxi Selon 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 Jiangxi Selon Industrial 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 Jiangxi Selon i.e., Jiangxi Selon and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Bomesc Offshore
Assuming the 90 days trading horizon Jiangxi Selon Industrial is expected to generate 1.37 times more return on investment than Bomesc Offshore. However, Jiangxi Selon is 1.37 times more volatile than Bomesc Offshore Engineering. It trades about 0.18 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about -0.39 per unit of risk. If you would invest 732.00 in Jiangxi Selon Industrial on October 7, 2024 and sell it today you would earn a total of 56.00 from holding Jiangxi Selon Industrial or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Selon Industrial vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Jiangxi Selon Industrial |
| Bomesc Offshore Engi |
Jiangxi Selon and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Selon and Bomesc Offshore
The main advantage of trading using opposite Jiangxi Selon and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon 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.| Jiangxi Selon vs. Maoming Petro Chemical Shihua | Jiangxi Selon vs. Liaoning Dingjide Petrochemical | Jiangxi Selon vs. Jinsanjiang Silicon Material | Jiangxi Selon vs. Zhengping RoadBridge Constr |
| Bomesc Offshore vs. Gansu Jiu Steel | Bomesc Offshore vs. Shandong Mining Machinery | Bomesc Offshore vs. Aba Chemicals Corp | Bomesc Offshore vs. BlueFocus Communication 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |