Correlation Between Chengtun Mining and Bomesc Offshore
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By analyzing existing cross correlation between Chengtun Mining Group and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Bomesc Offshore.
Diversification Opportunities for Chengtun Mining and Bomesc Offshore
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chengtun and Bomesc is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group 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 Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Chengtun Mining and Bomesc Offshore
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.23 times more return on investment than Bomesc Offshore. However, Chengtun Mining is 1.23 times more volatile than Bomesc Offshore Engineering. It trades about 0.12 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.12 per unit of risk. If you would invest 481.00 in Chengtun Mining Group on October 28, 2024 and sell it today you would earn a total of 24.00 from holding Chengtun Mining Group or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Chengtun Mining Group |
| Bomesc Offshore Engi |
Chengtun Mining and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Bomesc Offshore
The main advantage of trading using opposite Chengtun Mining and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Xinxiang Chemical Fiber | Chengtun Mining vs. Dymatic Chemicals | Chengtun Mining vs. Fujian Anjoy Foods | Chengtun Mining vs. Xiwang Foodstuffs Co |
| Bomesc Offshore vs. Ningbo Tech Bank Co | Bomesc Offshore vs. Hua Xia Bank | Bomesc Offshore vs. China Everbright Bank | Bomesc Offshore vs. Postal Savings Bank |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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