Correlation Between Bomesc Offshore and Jiaozuo Wanfang
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on Bomesc Offshore and Jiaozuo Wanfang 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 Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Jiaozuo Wanfang.
Diversification Opportunities for Bomesc Offshore and Jiaozuo Wanfang
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bomesc and Jiaozuo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum 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 Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Jiaozuo Wanfang
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to under-perform the Jiaozuo Wanfang. But the stock apears to be less risky and, when comparing its historical volatility, Bomesc Offshore Engineering is 1.35 times less risky than Jiaozuo Wanfang. The stock trades about -0.39 of its potential returns per unit of risk. The Jiaozuo Wanfang Aluminum is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 690.00 in Jiaozuo Wanfang Aluminum on October 14, 2024 and sell it today you would lose (10.00) from holding Jiaozuo Wanfang Aluminum or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Jiaozuo Wanfang Aluminum |
Bomesc Offshore and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Jiaozuo Wanfang
The main advantage of trading using opposite Bomesc Offshore and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| Bomesc Offshore vs. Ye Chiu Metal | Bomesc Offshore vs. Chengtun Mining Group | Bomesc Offshore vs. Chongqing Shunbo Aluminum | Bomesc Offshore vs. Xinjiang Baodi Mining |
| Jiaozuo Wanfang vs. Bomesc Offshore Engineering | Jiaozuo Wanfang vs. China Eastern Airlines | Jiaozuo Wanfang vs. Dongfeng Automobile Co | Jiaozuo Wanfang vs. Guangdong Jingyi Metal |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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