Correlation Between Bomesc Offshore and Haima Automobile
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Haima Automobile Group, you can compare the effects of market volatilities on Bomesc Offshore and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Haima Automobile.
Diversification Opportunities for Bomesc Offshore and Haima Automobile
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomesc and Haima is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Haima Automobile go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Haima Automobile
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.7 times more return on investment than Haima Automobile. However, Bomesc Offshore Engineering is 1.44 times less risky than Haima Automobile. It trades about 0.01 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.0 per unit of risk. If you would invest 1,233 in Bomesc Offshore Engineering on October 29, 2024 and sell it today you would lose (12.00) from holding Bomesc Offshore Engineering or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Haima Automobile Group
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Haima Automobile |
Bomesc Offshore and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Haima Automobile
The main advantage of trading using opposite Bomesc Offshore and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Bomesc Offshore vs. Guilin Seamild Foods | Bomesc Offshore vs. Zhejiang Construction Investment | Bomesc Offshore vs. Postal Savings Bank | Bomesc Offshore vs. Luyin Investment Group |
| Haima Automobile vs. China Longyuan Power | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Guangxi Guiguan Electric | Haima Automobile vs. Yantai North Andre |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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