Correlation Between Bomesc Offshore and China Vanke
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By analyzing existing cross correlation between Bomesc Offshore Engineering and China Vanke Co, you can compare the effects of market volatilities on Bomesc Offshore and China Vanke 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 Bomesc Offshore with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and China Vanke.
Diversification Opportunities for Bomesc Offshore and China Vanke
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bomesc and China is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Bomesc Offshore 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 Bomesc Offshore Engineering are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and China Vanke go up and down completely randomly.
Pair Corralation between Bomesc Offshore and China Vanke
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.61 times more return on investment than China Vanke. However, Bomesc Offshore Engineering is 1.64 times less risky than China Vanke. It trades about 0.22 of its potential returns per unit of risk. China Vanke Co is currently generating about 0.05 per unit of risk. If you would invest 1,154 in Bomesc Offshore Engineering on November 3, 2024 and sell it today you would earn a total of 84.00 from holding Bomesc Offshore Engineering or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. China Vanke Co
Performance |
| Timeline |
| Bomesc Offshore Engi |
| China Vanke |
Bomesc Offshore and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and China Vanke
The main advantage of trading using opposite Bomesc Offshore and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| Bomesc Offshore vs. Lianhe Chemical Technology | Bomesc Offshore vs. Senci Electric Machinery | Bomesc Offshore vs. Tjk Machinery Tianjin | Bomesc Offshore vs. Shandong Rike Chemical |
| China Vanke vs. Yankershop Food Co | China Vanke vs. Jiamei Food Packaging | China Vanke vs. Anji Foodstuff Co | China Vanke vs. JuneYao Dairy Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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