Correlation Between Bomesc Offshore and Giantec Semiconductor
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Giantec Semiconductor Corp, you can compare the effects of market volatilities on Bomesc Offshore and Giantec Semiconductor 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 Giantec Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Giantec Semiconductor.
Diversification Opportunities for Bomesc Offshore and Giantec Semiconductor
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bomesc and Giantec is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Giantec Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giantec Semiconductor 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 Giantec Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giantec Semiconductor has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Giantec Semiconductor go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Giantec Semiconductor
Assuming the 90 days trading horizon Bomesc Offshore is expected to generate 9.4 times less return on investment than Giantec Semiconductor. But when comparing it to its historical volatility, Bomesc Offshore Engineering is 2.28 times less risky than Giantec Semiconductor. It trades about 0.02 of its potential returns per unit of risk. Giantec Semiconductor Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,990 in Giantec Semiconductor Corp on November 6, 2024 and sell it today you would earn a total of 874.00 from holding Giantec Semiconductor Corp or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Giantec Semiconductor Corp
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Giantec Semiconductor |
Bomesc Offshore and Giantec Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Giantec Semiconductor
The main advantage of trading using opposite Bomesc Offshore and Giantec Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Giantec Semiconductor 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 Giantec Semiconductor will offset losses from the drop in Giantec Semiconductor's long position.| Bomesc Offshore vs. Orinko Advanced Plastics | Bomesc Offshore vs. Fuda Alloy Materials | Bomesc Offshore vs. GUOMAI Culture Media | Bomesc Offshore vs. Super Dragon Engineering Plastics |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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