Correlation Between YLZ Information and Bomesc Offshore
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By analyzing existing cross correlation between YLZ Information Tech and Bomesc Offshore Engineering, you can compare the effects of market volatilities on YLZ Information 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 YLZ Information with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and Bomesc Offshore.
Diversification Opportunities for YLZ Information and Bomesc Offshore
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YLZ and Bomesc is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech 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 YLZ Information 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 YLZ Information Tech 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 YLZ Information i.e., YLZ Information and Bomesc Offshore go up and down completely randomly.
Pair Corralation between YLZ Information and Bomesc Offshore
Assuming the 90 days trading horizon YLZ Information Tech is expected to under-perform the Bomesc Offshore. In addition to that, YLZ Information is 1.74 times more volatile than Bomesc Offshore Engineering. It trades about -0.2 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.07 per unit of volatility. If you would invest 1,175 in Bomesc Offshore Engineering on October 22, 2024 and sell it today you would earn a total of 22.00 from holding Bomesc Offshore Engineering or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YLZ Information Tech vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| YLZ Information Tech |
| Bomesc Offshore Engi |
YLZ Information and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and Bomesc Offshore
The main advantage of trading using opposite YLZ Information and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information 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.| YLZ Information vs. Shanghai Material Trading | YLZ Information vs. Luyin Investment Group | YLZ Information vs. Beijing Mainstreets Investment | YLZ Information vs. PKU HealthCare Corp |
| Bomesc Offshore vs. Shenzhen SDG Information | Bomesc Offshore vs. Jahen Household Products | Bomesc Offshore vs. Haima Automobile Group | Bomesc Offshore vs. State Grid InformationCommunication |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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