Correlation Between Bomesc Offshore and Beijing Mainstreets
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Bomesc Offshore and Beijing Mainstreets 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 Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Beijing Mainstreets.
Diversification Opportunities for Bomesc Offshore and Beijing Mainstreets
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomesc and Beijing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets 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 Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Beijing Mainstreets
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.59 times more return on investment than Beijing Mainstreets. However, Bomesc Offshore Engineering is 1.71 times less risky than Beijing Mainstreets. It trades about 0.02 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.02 per unit of risk. If you would invest 1,122 in Bomesc Offshore Engineering on August 31, 2024 and sell it today you would earn a total of 113.00 from holding Bomesc Offshore Engineering or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Beijing Mainstreets |
Bomesc Offshore and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Beijing Mainstreets
The main advantage of trading using opposite Bomesc Offshore and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' 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 |
| Beijing Mainstreets vs. Kweichow Moutai Co | Beijing Mainstreets vs. Contemporary Amperex Technology | Beijing Mainstreets vs. G bits Network Technology | Beijing Mainstreets vs. BYD Co Ltd |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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