Correlation Between Bomesc Offshore and Youyou Foods Co
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Youyou Foods Co, you can compare the effects of market volatilities on Bomesc Offshore and Youyou Foods Co 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 Youyou Foods Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Youyou Foods Co.
Diversification Opportunities for Bomesc Offshore and Youyou Foods Co
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bomesc and Youyou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods Co 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 Youyou Foods Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youyou Foods Co has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Youyou Foods Co go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Youyou Foods Co
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.81 times more return on investment than Youyou Foods Co. However, Bomesc Offshore Engineering is 1.24 times less risky than Youyou Foods Co. It trades about 0.33 of its potential returns per unit of risk. Youyou Foods Co is currently generating about -0.02 per unit of risk. If you would invest 1,127 in Bomesc Offshore Engineering on November 5, 2024 and sell it today you would earn a total of 111.00 from holding Bomesc Offshore Engineering or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Youyou Foods Co
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Youyou Foods Co |
Bomesc Offshore and Youyou Foods Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Youyou Foods Co
The main advantage of trading using opposite Bomesc Offshore and Youyou Foods Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Youyou Foods Co 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 Youyou Foods Co will offset losses from the drop in Youyou Foods Co's long position.| Bomesc Offshore vs. Baoshan Iron Steel | Bomesc Offshore vs. Integrated Electronic Systems | Bomesc Offshore vs. Fuzhou Rockchip Electronics | Bomesc Offshore vs. Ningbo Kangqiang Electronics |
| Youyou Foods Co vs. Guangzhou KDT Machinery | Youyou Foods Co vs. Ningbo Construction Co | Youyou Foods Co vs. Jiangsu Yanghe Brewery | Youyou Foods Co vs. Zhejiang Yinlun Machinery |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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