Correlation Between Offshore Oil and Bomesc Offshore
Specify exactly 2 symbols:
By analyzing existing cross correlation between Offshore Oil Engineering and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Offshore Oil 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 Offshore Oil with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Bomesc Offshore.
Diversification Opportunities for Offshore Oil and Bomesc Offshore
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Offshore and Bomesc is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering 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 Offshore Oil 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 Offshore Oil Engineering 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 Offshore Oil i.e., Offshore Oil and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Offshore Oil and Bomesc Offshore
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to under-perform the Bomesc Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Offshore Oil Engineering is 1.23 times less risky than Bomesc Offshore. The stock trades about -0.02 of its potential returns per unit of risk. The Bomesc Offshore Engineering is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,114 in Bomesc Offshore Engineering on August 29, 2024 and sell it today you would earn a total of 86.00 from holding Bomesc Offshore Engineering or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Offshore Oil Engineering |
| Bomesc Offshore Engi |
Offshore Oil and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Bomesc Offshore
The main advantage of trading using opposite Offshore Oil and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil 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.| Offshore Oil vs. Heren Health Co | Offshore Oil vs. RoadMain T Co | Offshore Oil vs. Meinian Onehealth Healthcare | Offshore Oil vs. Dezhan HealthCare Co |
| Bomesc Offshore vs. Bangyan Technology Co | Bomesc Offshore vs. Tsingtao Brewery Co | Bomesc Offshore vs. Sichuan Teway Food | Bomesc Offshore vs. Hubei Forbon Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |