Correlation Between Bomesc Offshore and Maoming Petro
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Bomesc Offshore and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Maoming Petro.
Diversification Opportunities for Bomesc Offshore and Maoming Petro
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bomesc and Maoming is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Maoming Petro go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Maoming Petro
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.78 times more return on investment than Maoming Petro. However, Bomesc Offshore Engineering is 1.28 times less risky than Maoming Petro. It trades about -0.03 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.14 per unit of risk. If you would invest 1,268 in Bomesc Offshore Engineering on November 3, 2024 and sell it today you would lose (30.00) from holding Bomesc Offshore Engineering or give up 2.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Maoming Petro Chemical |
Bomesc Offshore and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Maoming Petro
The main advantage of trading using opposite Bomesc Offshore and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro'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 |
| Maoming Petro vs. Runjian Communication Co | Maoming Petro vs. Shenzhen Zqgame | Maoming Petro vs. Dongfeng Automobile Co | Maoming Petro vs. Beijing Mainstreets Investment |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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