Correlation Between JCHX Mining and Bomesc Offshore
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By analyzing existing cross correlation between JCHX Mining Management and Bomesc Offshore Engineering, you can compare the effects of market volatilities on JCHX Mining and Bomesc Offshore 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 JCHX Mining with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of JCHX Mining and Bomesc Offshore.
Diversification Opportunities for JCHX Mining and Bomesc Offshore
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCHX and Bomesc is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding JCHX Mining Management and Bomesc Offshore Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomesc Offshore Engi and JCHX Mining 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 JCHX Mining Management are associated (or correlated) with Bomesc Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomesc Offshore Engi has no effect on the direction of JCHX Mining i.e., JCHX Mining and Bomesc Offshore go up and down completely randomly.
Pair Corralation between JCHX Mining and Bomesc Offshore
Assuming the 90 days trading horizon JCHX Mining is expected to generate 3.36 times less return on investment than Bomesc Offshore. In addition to that, JCHX Mining is 1.07 times more volatile than Bomesc Offshore Engineering. It trades about 0.02 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.06 per unit of volatility. If you would invest 941.00 in Bomesc Offshore Engineering on October 30, 2024 and sell it today you would earn a total of 297.00 from holding Bomesc Offshore Engineering or generate 31.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JCHX Mining Management vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| JCHX Mining Management |
| Bomesc Offshore Engi |
JCHX Mining and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JCHX Mining and Bomesc Offshore
The main advantage of trading using opposite JCHX Mining and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JCHX Mining position performs unexpectedly, Bomesc Offshore 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 Bomesc Offshore will offset losses from the drop in Bomesc Offshore's long position.| JCHX Mining vs. Zijin Mining Group | JCHX Mining vs. Wanhua Chemical Group | JCHX Mining vs. Baoshan Iron Steel | JCHX Mining vs. Shandong Gold Mining |
| Bomesc Offshore vs. CITIC Metal Co | Bomesc Offshore vs. Yili Chuanning Biotechnology | Bomesc Offshore vs. Rising Nonferrous Metals | Bomesc Offshore vs. China Aluminum International |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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