Correlation Between Bomesc Offshore and Runjian Communication
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Runjian Communication Co, you can compare the effects of market volatilities on Bomesc Offshore and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Runjian Communication.
Diversification Opportunities for Bomesc Offshore and Runjian Communication
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bomesc and Runjian is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Runjian Communication go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Runjian Communication
Assuming the 90 days trading horizon Bomesc Offshore is expected to generate 1.32 times less return on investment than Runjian Communication. But when comparing it to its historical volatility, Bomesc Offshore Engineering is 1.31 times less risky than Runjian Communication. It trades about 0.09 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,527 in Runjian Communication Co on November 2, 2024 and sell it today you would earn a total of 685.00 from holding Runjian Communication Co or generate 27.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Runjian Communication Co
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Runjian Communication |
Bomesc Offshore and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Runjian Communication
The main advantage of trading using opposite Bomesc Offshore and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Bomesc Offshore vs. Jiangsu Yueda Investment | Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. Jiahe Foods Industry | Bomesc Offshore vs. Shenzhen Centralcon 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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