Correlation Between HOB Biotech and Bomesc Offshore
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By analyzing existing cross correlation between HOB Biotech Group and Bomesc Offshore Engineering, you can compare the effects of market volatilities on HOB Biotech 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 HOB Biotech with a short position of Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and Bomesc Offshore.
Diversification Opportunities for HOB Biotech and Bomesc Offshore
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HOB and Bomesc is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group 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 HOB Biotech 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 HOB Biotech Group 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 HOB Biotech i.e., HOB Biotech and Bomesc Offshore go up and down completely randomly.
Pair Corralation between HOB Biotech and Bomesc Offshore
Assuming the 90 days trading horizon HOB Biotech Group is expected to generate 3.0 times more return on investment than Bomesc Offshore. However, HOB Biotech is 3.0 times more volatile than Bomesc Offshore Engineering. It trades about 0.38 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about 0.19 per unit of risk. If you would invest 2,254 in HOB Biotech Group on September 14, 2024 and sell it today you would earn a total of 8,891 from holding HOB Biotech Group or generate 394.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.28% |
Values | Daily Returns |
HOB Biotech Group vs. Bomesc Offshore Engineering
Performance |
Timeline |
HOB Biotech Group |
Bomesc Offshore Engi |
HOB Biotech and Bomesc Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HOB Biotech and Bomesc Offshore
The main advantage of trading using opposite HOB Biotech and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB Biotech 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.HOB Biotech vs. Industrial and Commercial | HOB Biotech vs. Kweichow Moutai Co | HOB Biotech vs. Agricultural Bank of | HOB Biotech vs. China Mobile Limited |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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