Correlation Between Bomesc Offshore and Zoy Home
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Zoy Home Furnishing, you can compare the effects of market volatilities on Bomesc Offshore and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Zoy Home.
Diversification Opportunities for Bomesc Offshore and Zoy Home
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomesc and Zoy is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Zoy Home go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Zoy Home
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to under-perform the Zoy Home. But the stock apears to be less risky and, when comparing its historical volatility, Bomesc Offshore Engineering is 2.04 times less risky than Zoy Home. The stock trades about -0.06 of its potential returns per unit of risk. The Zoy Home Furnishing is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,060 in Zoy Home Furnishing on October 25, 2024 and sell it today you would earn a total of 56.00 from holding Zoy Home Furnishing or generate 5.28% 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. Zoy Home Furnishing
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Zoy Home Furnishing |
Bomesc Offshore and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Zoy Home
The main advantage of trading using opposite Bomesc Offshore and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. Gansu Jiu Steel | Bomesc Offshore vs. Ming Yang Smart | Bomesc Offshore vs. Aba Chemicals Corp |
| Zoy Home vs. PetroChina Co Ltd | Zoy Home vs. Gansu Jiu Steel | Zoy Home vs. Ming Yang Smart | Zoy Home vs. Aba Chemicals Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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