Correlation Between Bomesc Offshore and Shanghai Bailian
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By analyzing existing cross correlation between Bomesc Offshore Engineering and Shanghai Bailian Group, you can compare the effects of market volatilities on Bomesc Offshore and Shanghai Bailian 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 Shanghai Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Shanghai Bailian.
Diversification Opportunities for Bomesc Offshore and Shanghai Bailian
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bomesc and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Shanghai Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Bomesc Offshore and Shanghai Bailian
Assuming the 90 days trading horizon Bomesc Offshore is expected to generate 2.67 times less return on investment than Shanghai Bailian. But when comparing it to its historical volatility, Bomesc Offshore Engineering is 1.72 times less risky than Shanghai Bailian. It trades about 0.17 of its potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 60.00 in Shanghai Bailian Group on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Shanghai Bailian Group or generate 18.33% 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. Shanghai Bailian Group
Performance |
| Timeline |
| Bomesc Offshore Engi |
| Shanghai Bailian |
Bomesc Offshore and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomesc Offshore and Shanghai Bailian
The main advantage of trading using opposite Bomesc Offshore and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Shanghai Bailian 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 Shanghai Bailian will offset losses from the drop in Shanghai Bailian's long position.| Bomesc Offshore vs. Ye Chiu Metal | Bomesc Offshore vs. Fiberhome Telecommunication Technologies | Bomesc Offshore vs. Shuhua Sports Co | Bomesc Offshore vs. Mengtian Home Group |
| Shanghai Bailian vs. Eastern Air Logistics | Shanghai Bailian vs. Guangzhou Haige Communications | Shanghai Bailian vs. Allwin Telecommunication Co | Shanghai Bailian vs. MayAir Technology Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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