Correlation Between Bomesc Offshore and Bangyan Technology
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Bangyan Technology Co, you can compare the effects of market volatilities on Bomesc Offshore and Bangyan Technology 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 Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Bangyan Technology.
Diversification Opportunities for Bomesc Offshore and Bangyan Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bomesc and Bangyan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology 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 Bangyan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangyan Technology has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Bangyan Technology go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Bangyan Technology
Assuming the 90 days trading horizon Bomesc Offshore is expected to generate 1.12 times less return on investment than Bangyan Technology. But when comparing it to its historical volatility, Bomesc Offshore Engineering is 1.89 times less risky than Bangyan Technology. It trades about 0.16 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Bangyan Technology Co on September 1, 2024 and sell it today you would earn a total of 92.00 from holding Bangyan Technology Co or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Bangyan Technology Co
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Bangyan Technology |
Bomesc Offshore and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Bangyan Technology
The main advantage of trading using opposite Bomesc Offshore and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Bangyan Technology 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 Bangyan Technology will offset losses from the drop in Bangyan Technology's long position.| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. ADAMA | Bomesc Offshore vs. Changchun Faway Automobile | Bomesc Offshore vs. Zhejiang Dahua Technology |
| Bangyan Technology vs. Industrial and Commercial | Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. Agricultural Bank of | Bangyan Technology 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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