Correlation Between Super Dragon and Bomesc Offshore
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Super Dragon 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 Super Dragon with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Bomesc Offshore.
Diversification Opportunities for Super Dragon and Bomesc Offshore
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Super and Bomesc is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast 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 Super Dragon 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 Super Dragon Engineering Plastics 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 Super Dragon i.e., Super Dragon and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Super Dragon and Bomesc Offshore
Assuming the 90 days trading horizon Super Dragon is expected to generate 1.02 times less return on investment than Bomesc Offshore. In addition to that, Super Dragon is 1.45 times more volatile than Bomesc Offshore Engineering. It trades about 0.01 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Super Dragon Enginee |
| Bomesc Offshore Engi |
Super Dragon and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Bomesc Offshore
The main advantage of trading using opposite Super Dragon and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon 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.| Super Dragon vs. Suzhou Douson Drilling | Super Dragon vs. Tianjin Pengling Rubber | Super Dragon vs. CSSC Offshore Marine | Super Dragon vs. Suzhou Xingye Material |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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