Correlation Between Dongfeng Automobile and Bomesc Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Bomesc Offshore.
Diversification Opportunities for Dongfeng Automobile and Bomesc Offshore
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongfeng and Bomesc is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co 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 Dongfeng Automobile 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 Dongfeng Automobile Co 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 Dongfeng Automobile i.e., Dongfeng Automobile and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Bomesc Offshore
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 1.2 times more return on investment than Bomesc Offshore. However, Dongfeng Automobile is 1.2 times more volatile than Bomesc Offshore Engineering. It trades about 0.02 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.01 per unit of risk. If you would invest 601.00 in Dongfeng Automobile Co on October 29, 2024 and sell it today you would earn a total of 87.00 from holding Dongfeng Automobile Co or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Dongfeng Automobile |
| Bomesc Offshore Engi |
Dongfeng Automobile and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Bomesc Offshore
The main advantage of trading using opposite Dongfeng Automobile and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. Guangzhou Jinyi Media | Dongfeng Automobile vs. Xinxiang Chemical Fiber | Dongfeng Automobile vs. Omnijoi Media Corp | Dongfeng Automobile vs. Liaoning Dingjide Petrochemical |
| Bomesc Offshore vs. Guilin Seamild Foods | Bomesc Offshore vs. Zhejiang Construction Investment | Bomesc Offshore vs. Postal Savings Bank | Bomesc Offshore vs. Luyin Investment 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| 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 |