Correlation Between Jiangsu Hoperun and Bomesc Offshore
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Jiangsu Hoperun 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 Jiangsu Hoperun with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Bomesc Offshore.
Diversification Opportunities for Jiangsu Hoperun and Bomesc Offshore
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Bomesc is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software 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 Jiangsu Hoperun 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 Jiangsu Hoperun Software 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 Jiangsu Hoperun i.e., Jiangsu Hoperun and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Bomesc Offshore
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to under-perform the Bomesc Offshore. In addition to that, Jiangsu Hoperun is 2.18 times more volatile than Bomesc Offshore Engineering. It trades about -0.04 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.17 per unit of volatility. If you would invest 1,159 in Bomesc Offshore Engineering on September 2, 2024 and sell it today you would earn a total of 76.00 from holding Bomesc Offshore Engineering or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| Bomesc Offshore Engi |
Jiangsu Hoperun and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Bomesc Offshore
The main advantage of trading using opposite Jiangsu Hoperun and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun 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.| Jiangsu Hoperun vs. Agricultural Bank of | Jiangsu Hoperun vs. Industrial and Commercial | Jiangsu Hoperun vs. Bank of China | Jiangsu Hoperun vs. China Construction Bank |
| Bomesc Offshore vs. Ye Chiu Metal | Bomesc Offshore vs. Fiberhome Telecommunication Technologies | Bomesc Offshore vs. Shuhua Sports Co | Bomesc Offshore vs. Mengtian Home 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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