Correlation Between Shuhua Sports and Bomesc Offshore
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By analyzing existing cross correlation between Shuhua Sports Co and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Shuhua Sports 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 Shuhua Sports with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Bomesc Offshore.
Diversification Opportunities for Shuhua Sports and Bomesc Offshore
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shuhua and Bomesc is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co 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 Shuhua Sports 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 Shuhua Sports Co 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 Shuhua Sports i.e., Shuhua Sports and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Shuhua Sports and Bomesc Offshore
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 2.34 times more return on investment than Bomesc Offshore. However, Shuhua Sports is 2.34 times more volatile than Bomesc Offshore Engineering. It trades about 0.08 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.0 per unit of risk. If you would invest 802.00 in Shuhua Sports Co on October 24, 2024 and sell it today you would earn a total of 42.00 from holding Shuhua Sports Co or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Shuhua Sports |
| Bomesc Offshore Engi |
Shuhua Sports and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Bomesc Offshore
The main advantage of trading using opposite Shuhua Sports and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports 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.| Shuhua Sports vs. Jilin Chemical Fibre | Shuhua Sports vs. Jinsanjiang Silicon Material | Shuhua Sports vs. Tongyu Communication | Shuhua Sports vs. Wuxi Chemical Equipment |
| Bomesc Offshore vs. Shanghai Broadband Technology | Bomesc Offshore vs. Shaanxi Broadcast TV | Bomesc Offshore vs. JCHX Mining Management | Bomesc Offshore vs. China Asset Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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