Correlation Between Sichuan Teway and Bomesc Offshore
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By analyzing existing cross correlation between Sichuan Teway Food and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Sichuan Teway 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 Sichuan Teway with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Bomesc Offshore.
Diversification Opportunities for Sichuan Teway and Bomesc Offshore
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Bomesc is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food 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 Sichuan Teway 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 Sichuan Teway Food 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 Sichuan Teway i.e., Sichuan Teway and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Sichuan Teway and Bomesc Offshore
Assuming the 90 days trading horizon Sichuan Teway Food is expected to under-perform the Bomesc Offshore. In addition to that, Sichuan Teway is 1.54 times more volatile than Bomesc Offshore Engineering. It trades about -0.03 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.16 per unit of volatility. If you would invest 1,166 in Bomesc Offshore Engineering on September 1, 2024 and sell it today you would earn a total of 69.00 from holding Bomesc Offshore Engineering or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Sichuan Teway Food |
| Bomesc Offshore Engi |
Sichuan Teway and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Bomesc Offshore
The main advantage of trading using opposite Sichuan Teway and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway 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.| Sichuan Teway vs. Nanjing Putian Telecommunications | Sichuan Teway vs. Shenzhen Hifuture Electric | Sichuan Teway vs. Tianjin Realty Development | Sichuan Teway vs. Shenyang Huitian Thermal |
| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. ADAMA | Bomesc Offshore vs. Changchun Faway Automobile | Bomesc Offshore vs. Zhejiang Dahua 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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