Correlation Between Bomesc Offshore and Shengda Mining
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Shengda Mining Co, you can compare the effects of market volatilities on Bomesc Offshore and Shengda Mining 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 Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Shengda Mining.
Diversification Opportunities for Bomesc Offshore and Shengda Mining
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bomesc and Shengda is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining 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 Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Shengda Mining go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Shengda Mining
Assuming the 90 days trading horizon Bomesc Offshore is expected to generate 3.14 times less return on investment than Shengda Mining. But when comparing it to its historical volatility, Bomesc Offshore Engineering is 1.42 times less risky than Shengda Mining. It trades about 0.01 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,358 in Shengda Mining Co on October 25, 2024 and sell it today you would earn a total of 14.00 from holding Shengda Mining Co or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Shengda Mining Co
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Shengda Mining |
Bomesc Offshore and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Shengda Mining
The main advantage of trading using opposite Bomesc Offshore and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. Gansu Jiu Steel | Bomesc Offshore vs. Ming Yang Smart | Bomesc Offshore vs. Aba Chemicals Corp |
| Shengda Mining vs. HeNan Splendor Science | Shengda Mining vs. Changchun UP Optotech | Shengda Mining vs. CGN Nuclear Technology | Shengda Mining vs. Ping An Insurance |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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