Correlation Between Wuhan Yangtze and Bomesc Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Yangtze Communication and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Bomesc Offshore.
Diversification Opportunities for Wuhan Yangtze and Bomesc Offshore
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Bomesc is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication 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 Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Bomesc Offshore
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.38 times more return on investment than Bomesc Offshore. However, Wuhan Yangtze is 1.38 times more volatile than Bomesc Offshore Engineering. It trades about 0.05 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 1,679 in Wuhan Yangtze Communication on September 2, 2024 and sell it today you would earn a total of 1,290 from holding Wuhan Yangtze Communication or generate 76.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Bomesc Offshore Engi |
Wuhan Yangtze and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Bomesc Offshore
The main advantage of trading using opposite Wuhan Yangtze and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Industrial and Commercial | Wuhan Yangtze vs. Kweichow Moutai Co | Wuhan Yangtze vs. Agricultural Bank of | Wuhan Yangtze vs. China Mobile Limited |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |