Correlation Between Bomesc Offshore and Wuxi Xuelang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bomesc Offshore Engineering and Wuxi Xuelang Environmental, you can compare the effects of market volatilities on Bomesc Offshore and Wuxi Xuelang 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 Wuxi Xuelang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Wuxi Xuelang.
Diversification Opportunities for Bomesc Offshore and Wuxi Xuelang
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bomesc and Wuxi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Wuxi Xuelang Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Xuelang Environ 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 Wuxi Xuelang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Xuelang Environ has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Wuxi Xuelang go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Wuxi Xuelang
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.6 times more return on investment than Wuxi Xuelang. However, Bomesc Offshore Engineering is 1.66 times less risky than Wuxi Xuelang. It trades about 0.0 of its potential returns per unit of risk. Wuxi Xuelang Environmental is currently generating about -0.08 per unit of risk. If you would invest 1,175 in Bomesc Offshore Engineering on October 24, 2024 and sell it today you would lose (5.00) from holding Bomesc Offshore Engineering or give up 0.43% 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. Wuxi Xuelang Environmental
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Wuxi Xuelang Environ |
Bomesc Offshore and Wuxi Xuelang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Wuxi Xuelang
The main advantage of trading using opposite Bomesc Offshore and Wuxi Xuelang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Wuxi Xuelang 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 Wuxi Xuelang will offset losses from the drop in Wuxi Xuelang's long position.| Bomesc Offshore vs. Shanghai Broadband Technology | Bomesc Offshore vs. Shaanxi Broadcast TV | Bomesc Offshore vs. JCHX Mining Management | Bomesc Offshore vs. China Asset Management |
| Wuxi Xuelang vs. Quectel Wireless Solutions | Wuxi Xuelang vs. Zotye Automobile Co | Wuxi Xuelang vs. Youyou Foods Co | Wuxi Xuelang vs. Bomesc Offshore Engineering |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |