Correlation Between Bomesc Offshore and State Grid
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By analyzing existing cross correlation between Bomesc Offshore Engineering and State Grid InformationCommunication, you can compare the effects of market volatilities on Bomesc Offshore and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and State Grid.
Diversification Opportunities for Bomesc Offshore and State Grid
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomesc and State is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and State Grid go up and down completely randomly.
Pair Corralation between Bomesc Offshore and State Grid
Assuming the 90 days trading horizon Bomesc Offshore is expected to generate 1.77 times less return on investment than State Grid. But when comparing it to its historical volatility, Bomesc Offshore Engineering is 1.09 times less risky than State Grid. It trades about 0.01 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,698 in State Grid InformationCommunication on October 29, 2024 and sell it today you would earn a total of 117.00 from holding State Grid InformationCommunication or generate 6.89% 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. State Grid InformationCommunic
Performance |
| Timeline |
| Bomesc Offshore Engi |
| State Grid Informati |
Bomesc Offshore and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and State Grid
The main advantage of trading using opposite Bomesc Offshore and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Bomesc Offshore vs. Guilin Seamild Foods | Bomesc Offshore vs. Zhejiang Construction Investment | Bomesc Offshore vs. Postal Savings Bank | Bomesc Offshore vs. Luyin Investment Group |
| State Grid vs. Industrial and Commercial | State Grid vs. Kweichow Moutai Co | State Grid vs. Agricultural Bank of | State Grid vs. China Mobile Limited |
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..
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