Correlation Between Bomesc Offshore and Kangxin New
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Kangxin New Materials, you can compare the effects of market volatilities on Bomesc Offshore and Kangxin New 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Kangxin New.
Diversification Opportunities for Bomesc Offshore and Kangxin New
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bomesc and Kangxin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Kangxin New go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Kangxin New
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.87 times more return on investment than Kangxin New. However, Bomesc Offshore Engineering is 1.15 times less risky than Kangxin New. It trades about 0.02 of its potential returns per unit of risk. Kangxin New Materials is currently generating about 0.0 per unit of risk. If you would invest 1,197 in Bomesc Offshore Engineering on September 4, 2024 and sell it today you would earn a total of 50.00 from holding Bomesc Offshore Engineering or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Kangxin New Materials
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Kangxin New Materials |
Bomesc Offshore and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Kangxin New
The main advantage of trading using opposite Bomesc Offshore and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. Zhejiang HISUN Biomaterials | Bomesc Offshore vs. Kingsignal Technology Co | Bomesc Offshore vs. Ming Yang Smart |
| Kangxin New vs. Inly Media Co | Kangxin New vs. Tsingtao Brewery Co | Kangxin New vs. HMTNew Technical | Kangxin New vs. Beijing Bashi Media |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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