Correlation Between China Everbright and Bomesc Offshore
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By analyzing existing cross correlation between China Everbright Bank and Bomesc Offshore Engineering, you can compare the effects of market volatilities on China Everbright 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 China Everbright with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and Bomesc Offshore.
Diversification Opportunities for China Everbright and Bomesc Offshore
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Bomesc is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank 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 China Everbright 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 China Everbright Bank 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 China Everbright i.e., China Everbright and Bomesc Offshore go up and down completely randomly.
Pair Corralation between China Everbright and Bomesc Offshore
Assuming the 90 days trading horizon China Everbright is expected to generate 2.3 times less return on investment than Bomesc Offshore. In addition to that, China Everbright is 1.04 times more volatile than Bomesc Offshore Engineering. It trades about 0.14 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.33 per unit of volatility. If you would invest 1,127 in Bomesc Offshore Engineering on November 6, 2024 and sell it today you would earn a total of 111.00 from holding Bomesc Offshore Engineering or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Everbright Bank vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| China Everbright Bank |
| Bomesc Offshore Engi |
China Everbright and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Everbright and Bomesc Offshore
The main advantage of trading using opposite China Everbright and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright 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.| China Everbright vs. Eyebright Medical Technology | China Everbright vs. Guizhou Chanhen Chemical | China Everbright vs. Smartgiant Technology Co | China Everbright vs. Soyea Technology Co |
| Bomesc Offshore vs. Orinko Advanced Plastics | Bomesc Offshore vs. Fuda Alloy Materials | Bomesc Offshore vs. GUOMAI Culture Media | Bomesc Offshore vs. Super Dragon Engineering Plastics |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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