Correlation Between Qingdao Citymedia and Bomesc Offshore
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By analyzing existing cross correlation between Qingdao Citymedia Co and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Qingdao Citymedia 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 Qingdao Citymedia with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Citymedia and Bomesc Offshore.
Diversification Opportunities for Qingdao Citymedia and Bomesc Offshore
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qingdao and Bomesc is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Citymedia 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 Qingdao Citymedia 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 Qingdao Citymedia 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 Qingdao Citymedia i.e., Qingdao Citymedia and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Qingdao Citymedia and Bomesc Offshore
Assuming the 90 days trading horizon Qingdao Citymedia Co is expected to generate 1.16 times more return on investment than Bomesc Offshore. However, Qingdao Citymedia is 1.16 times more volatile than Bomesc Offshore Engineering. It trades about 0.29 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.17 per unit of risk. If you would invest 688.00 in Qingdao Citymedia Co on September 2, 2024 and sell it today you would earn a total of 92.00 from holding Qingdao Citymedia Co or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Citymedia Co vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Qingdao Citymedia |
| Bomesc Offshore Engi |
Qingdao Citymedia and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Citymedia and Bomesc Offshore
The main advantage of trading using opposite Qingdao Citymedia and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Citymedia 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.| Qingdao Citymedia vs. Ye Chiu Metal | Qingdao Citymedia vs. State Grid InformationCommunication | Qingdao Citymedia vs. Jilin Jlu Communication | Qingdao Citymedia vs. Guangdong Advertising Co |
| Bomesc Offshore vs. Ye Chiu Metal | Bomesc Offshore vs. Fiberhome Telecommunication Technologies | Bomesc Offshore vs. Shuhua Sports Co | Bomesc Offshore vs. Mengtian Home 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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