Correlation Between Huaxia Fund and Bomesc Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huaxia Fund Management and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Huaxia Fund 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 Huaxia Fund with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Bomesc Offshore.
Diversification Opportunities for Huaxia Fund and Bomesc Offshore
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Bomesc is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management 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 Huaxia Fund 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 Huaxia Fund Management 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 Huaxia Fund i.e., Huaxia Fund and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Huaxia Fund and Bomesc Offshore
Assuming the 90 days trading horizon Huaxia Fund Management is expected to under-perform the Bomesc Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Huaxia Fund Management is 2.46 times less risky than Bomesc Offshore. The stock trades about -0.08 of its potential returns per unit of risk. The Bomesc Offshore Engineering is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,256 in Bomesc Offshore Engineering on September 3, 2024 and sell it today you would lose (21.00) from holding Bomesc Offshore Engineering or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Huaxia Fund Management |
| Bomesc Offshore Engi |
Huaxia Fund and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Bomesc Offshore
The main advantage of trading using opposite Huaxia Fund and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund 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.| Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited |
| Bomesc Offshore vs. XinJiang GuoTong Pipeline | Bomesc Offshore vs. Tianshan Aluminum Group | Bomesc Offshore vs. Dymatic Chemicals | Bomesc Offshore vs. Western Metal Materials |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |