Correlation Between Bomesc Offshore and SSAW Hotels
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By analyzing existing cross correlation between Bomesc Offshore Engineering and SSAW Hotels Resorts, you can compare the effects of market volatilities on Bomesc Offshore and SSAW Hotels 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 SSAW Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and SSAW Hotels.
Diversification Opportunities for Bomesc Offshore and SSAW Hotels
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomesc and SSAW is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and SSAW Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAW Hotels Resorts 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 SSAW Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAW Hotels Resorts has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and SSAW Hotels go up and down completely randomly.
Pair Corralation between Bomesc Offshore and SSAW Hotels
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.49 times more return on investment than SSAW Hotels. However, Bomesc Offshore Engineering is 2.03 times less risky than SSAW Hotels. It trades about 0.01 of its potential returns per unit of risk. SSAW Hotels Resorts is currently generating about -0.13 per unit of risk. If you would invest 1,235 in Bomesc Offshore Engineering on November 7, 2024 and sell it today you would earn a total of 3.00 from holding Bomesc Offshore Engineering or generate 0.24% 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. SSAW Hotels Resorts
Performance |
| Timeline |
| Bomesc Offshore Engi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| SSAW Hotels Resorts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bomesc Offshore and SSAW Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and SSAW Hotels
The main advantage of trading using opposite Bomesc Offshore and SSAW Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, SSAW Hotels 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 SSAW Hotels will offset losses from the drop in SSAW Hotels' long position.The idea behind Bomesc Offshore Engineering and SSAW Hotels Resorts pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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