Correlation Between China World and Bomesc Offshore
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By analyzing existing cross correlation between China World Trade and Bomesc Offshore Engineering, you can compare the effects of market volatilities on China World 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 China World with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Bomesc Offshore.
Diversification Opportunities for China World and Bomesc Offshore
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Bomesc is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade 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 China World 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 China World Trade 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 China World i.e., China World and Bomesc Offshore go up and down completely randomly.
Pair Corralation between China World and Bomesc Offshore
Assuming the 90 days trading horizon China World Trade is expected to generate 0.74 times more return on investment than Bomesc Offshore. However, China World Trade is 1.36 times less risky than Bomesc Offshore. It trades about 0.1 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.0 per unit of risk. If you would invest 2,393 in China World Trade on October 24, 2024 and sell it today you would earn a total of 57.00 from holding China World Trade or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| China World Trade |
| Bomesc Offshore Engi |
China World and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Bomesc Offshore
The main advantage of trading using opposite China World and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World 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.| China World vs. Xinjiang Baodi Mining | China World vs. Hubeiyichang Transportation Group | China World vs. Guocheng Mining Co | China World vs. Shenyang Blue Silver |
| Bomesc Offshore vs. Shanghai Broadband Technology | Bomesc Offshore vs. Shaanxi Broadcast TV | Bomesc Offshore vs. JCHX Mining Management | Bomesc Offshore vs. China Asset Management |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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