Correlation Between Rising Nonferrous and Bomesc Offshore
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By analyzing existing cross correlation between Rising Nonferrous Metals and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Rising Nonferrous 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 Rising Nonferrous with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Bomesc Offshore.
Diversification Opportunities for Rising Nonferrous and Bomesc Offshore
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rising and Bomesc is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals 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 Rising Nonferrous 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 Rising Nonferrous Metals 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 Rising Nonferrous i.e., Rising Nonferrous and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Bomesc Offshore
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Bomesc Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Rising Nonferrous Metals is 1.08 times less risky than Bomesc Offshore. The stock trades about -0.04 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 1,227 in Bomesc Offshore Engineering on October 30, 2024 and sell it today you would earn a total of 11.00 from holding Bomesc Offshore Engineering or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Bomesc Offshore Engi |
Rising Nonferrous and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Bomesc Offshore
The main advantage of trading using opposite Rising Nonferrous and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous 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.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Shandong Gold Mining |
| Bomesc Offshore vs. CITIC Metal Co | Bomesc Offshore vs. Yili Chuanning Biotechnology | Bomesc Offshore vs. Rising Nonferrous Metals | Bomesc Offshore vs. China Aluminum International |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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