Correlation Between Bomesc Offshore and Ningbo Tech-Bank
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Bomesc Offshore and Ningbo Tech-Bank 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 Ningbo Tech-Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Ningbo Tech-Bank.
Diversification Opportunities for Bomesc Offshore and Ningbo Tech-Bank
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomesc and Ningbo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech-Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Ningbo Tech-Bank go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Ningbo Tech-Bank
Assuming the 90 days trading horizon Bomesc Offshore is expected to generate 1.02 times less return on investment than Ningbo Tech-Bank. But when comparing it to its historical volatility, Bomesc Offshore Engineering is 1.35 times less risky than Ningbo Tech-Bank. It trades about 0.22 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Ningbo Tech Bank Co on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Ningbo Tech Bank Co or generate 7.19% 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. Ningbo Tech Bank Co
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Ningbo Tech Bank |
Bomesc Offshore and Ningbo Tech-Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Ningbo Tech-Bank
The main advantage of trading using opposite Bomesc Offshore and Ningbo Tech-Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Ningbo Tech-Bank 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 Ningbo Tech-Bank will offset losses from the drop in Ningbo Tech-Bank'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 |
| Ningbo Tech-Bank vs. Qingdao Foods Co | Ningbo Tech-Bank vs. Shanghai Rightongene Biotechnology | Ningbo Tech-Bank vs. Youyou Foods Co | Ningbo Tech-Bank vs. JuneYao Dairy Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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