Correlation Between Bomesc Offshore and Biwin Storage
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Biwin Storage Technology, you can compare the effects of market volatilities on Bomesc Offshore and Biwin Storage 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 Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Biwin Storage.
Diversification Opportunities for Bomesc Offshore and Biwin Storage
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bomesc and Biwin is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Biwin Storage Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biwin Storage 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 Biwin Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biwin Storage Technology has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Biwin Storage go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Biwin Storage
Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to under-perform the Biwin Storage. But the stock apears to be less risky and, when comparing its historical volatility, Bomesc Offshore Engineering is 2.29 times less risky than Biwin Storage. The stock trades about -0.45 of its potential returns per unit of risk. The Biwin Storage Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,030 in Biwin Storage Technology on October 12, 2024 and sell it today you would lose (131.00) from holding Biwin Storage Technology or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomesc Offshore Engineering vs. Biwin Storage Technology
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Biwin Storage Technology |
Bomesc Offshore and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Biwin Storage
The main advantage of trading using opposite Bomesc Offshore and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Biwin Storage 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 Biwin Storage will offset losses from the drop in Biwin Storage's long position.| Bomesc Offshore vs. Zhejiang Yongjin Metal | Bomesc Offshore vs. Heilongjiang Transport Development | Bomesc Offshore vs. Aluminum Corp of | Bomesc Offshore vs. Offshore Oil Engineering |
| Biwin Storage vs. Southern PublishingMedia Co | Biwin Storage vs. Bomesc Offshore Engineering | Biwin Storage vs. Sunny Loan Top | Biwin Storage vs. Jiangsu Financial Leasing |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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