Correlation Between Bomesc Offshore and Changchun BCHT
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Bomesc Offshore and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Changchun BCHT.
Diversification Opportunities for Bomesc Offshore and Changchun BCHT
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bomesc and Changchun is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Changchun BCHT go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Changchun BCHT
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.65 times more return on investment than Changchun BCHT. However, Bomesc Offshore Engineering is 1.54 times less risky than Changchun BCHT. It trades about 0.04 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.08 per unit of risk. If you would invest 1,173 in Bomesc Offshore Engineering on August 30, 2024 and sell it today you would earn a total of 29.00 from holding Bomesc Offshore Engineering or generate 2.47% 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. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Changchun BCHT Biote |
Bomesc Offshore and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Changchun BCHT
The main advantage of trading using opposite Bomesc Offshore and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| Bomesc Offshore vs. Zhejiang Kingland Pipeline | Bomesc Offshore vs. Chongqing Changan Automobile | Bomesc Offshore vs. Jiangsu Hoperun Software | Bomesc Offshore vs. Qingdao Citymedia Co |
| Changchun BCHT vs. Agricultural Bank of | Changchun BCHT vs. Industrial and Commercial | Changchun BCHT vs. Bank of China | Changchun BCHT vs. PetroChina Co Ltd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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