Correlation Between Zhejiang HISUN and Bomesc Offshore
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By analyzing existing cross correlation between Zhejiang HISUN Biomaterials and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Zhejiang HISUN 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 Zhejiang HISUN with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang HISUN and Bomesc Offshore.
Diversification Opportunities for Zhejiang HISUN and Bomesc Offshore
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Bomesc is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang HISUN Biomaterials 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 Zhejiang HISUN 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 Zhejiang HISUN Biomaterials 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 Zhejiang HISUN i.e., Zhejiang HISUN and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Zhejiang HISUN and Bomesc Offshore
Assuming the 90 days trading horizon Zhejiang HISUN Biomaterials is expected to under-perform the Bomesc Offshore. In addition to that, Zhejiang HISUN is 1.03 times more volatile than Bomesc Offshore Engineering. It trades about -0.04 of its total potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.09 per unit of volatility. If you would invest 1,232 in Bomesc Offshore Engineering on September 12, 2024 and sell it today you would earn a total of 38.00 from holding Bomesc Offshore Engineering or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang HISUN Biomaterials vs. Bomesc Offshore Engineering
Performance |
| Timeline |
| Zhejiang HISUN Bioma |
| Bomesc Offshore Engi |
Zhejiang HISUN and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang HISUN and Bomesc Offshore
The main advantage of trading using opposite Zhejiang HISUN and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang HISUN 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.| Zhejiang HISUN vs. Nanjing Putian Telecommunications | Zhejiang HISUN vs. Eastern Communications Co | Zhejiang HISUN vs. Anhui Jianghuai Automobile | Zhejiang HISUN vs. China World Trade |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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