Correlation Between Bomesc Offshore and Guangxi Guitang
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Guangxi Guitang Group, you can compare the effects of market volatilities on Bomesc Offshore and Guangxi Guitang 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 Guangxi Guitang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Guangxi Guitang.
Diversification Opportunities for Bomesc Offshore and Guangxi Guitang
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomesc and Guangxi is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Guangxi Guitang Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guitang Group 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 Guangxi Guitang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guitang Group has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Guangxi Guitang go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Guangxi Guitang
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to under-perform the Guangxi Guitang. But the stock apears to be less risky and, when comparing its historical volatility, Bomesc Offshore Engineering is 1.79 times less risky than Guangxi Guitang. The stock trades about -0.01 of its potential returns per unit of risk. The Guangxi Guitang Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 475.00 in Guangxi Guitang Group on September 14, 2024 and sell it today you would earn a total of 935.00 from holding Guangxi Guitang Group or generate 196.84% 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. Guangxi Guitang Group
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Guangxi Guitang Group |
Bomesc Offshore and Guangxi Guitang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Guangxi Guitang
The main advantage of trading using opposite Bomesc Offshore and Guangxi Guitang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Guangxi Guitang 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 Guangxi Guitang will offset losses from the drop in Guangxi Guitang's long position.| Bomesc Offshore vs. YLZ Information Tech | Bomesc Offshore vs. Dawning Information Industry | Bomesc Offshore vs. Fujian Longzhou Transportation | Bomesc Offshore vs. Shenzhen SDG Information |
| Guangxi Guitang vs. Lander Sports Development | Guangxi Guitang vs. Bomesc Offshore Engineering | Guangxi Guitang vs. China Sports Industry | Guangxi Guitang vs. Haima Automobile Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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