Correlation Between Kangxin New and Bomesc Offshore
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By analyzing existing cross correlation between Kangxin New Materials and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Kangxin New 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 Kangxin New with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Bomesc Offshore.
Diversification Opportunities for Kangxin New and Bomesc Offshore
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kangxin and Bomesc is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials 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 Kangxin New 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 Kangxin New Materials 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 Kangxin New i.e., Kangxin New and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Kangxin New and Bomesc Offshore
Assuming the 90 days trading horizon Kangxin New Materials is expected to under-perform the Bomesc Offshore. In addition to that, Kangxin New is 1.14 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 0.01 per unit of volatility. If you would invest 1,208 in Bomesc Offshore Engineering on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Bomesc Offshore Engineering or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Kangxin New Materials |
| Bomesc Offshore Engi |
Kangxin New and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Bomesc Offshore
The main advantage of trading using opposite Kangxin New and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New 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.| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Rongsheng Petrochemical Co |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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