Correlation Between Hubei Forbon and Bomesc Offshore
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By analyzing existing cross correlation between Hubei Forbon Technology and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Hubei Forbon 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 Hubei Forbon with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Bomesc Offshore.
Diversification Opportunities for Hubei Forbon and Bomesc Offshore
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Bomesc is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology 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 Hubei Forbon 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 Hubei Forbon Technology 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 Hubei Forbon i.e., Hubei Forbon and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Hubei Forbon and Bomesc Offshore
Assuming the 90 days trading horizon Hubei Forbon Technology is expected to generate 2.24 times more return on investment than Bomesc Offshore. However, Hubei Forbon is 2.24 times more volatile than Bomesc Offshore Engineering. It trades about 0.16 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.16 per unit of risk. If you would invest 795.00 in Hubei Forbon Technology on September 1, 2024 and sell it today you would earn a total of 108.00 from holding Hubei Forbon Technology or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Hubei Forbon Technology |
| Bomesc Offshore Engi |
Hubei Forbon and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Bomesc Offshore
The main advantage of trading using opposite Hubei Forbon and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon 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.| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Wanhua Chemical Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon vs. Shandong Gold Mining |
| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. ADAMA | Bomesc Offshore vs. Changchun Faway Automobile | Bomesc Offshore vs. Zhejiang Dahua Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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