Correlation Between Bomesc Offshore and Kingsignal Technology

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Can any of the company-specific risk be diversified away by investing in both Bomesc Offshore and Kingsignal Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bomesc Offshore and Kingsignal Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bomesc Offshore Engineering and Kingsignal Technology Co, you can compare the effects of market volatilities on Bomesc Offshore and Kingsignal Technology 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 Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomesc Offshore and Kingsignal Technology.

Diversification Opportunities for Bomesc Offshore and Kingsignal Technology

-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between Bomesc and Kingsignal is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bomesc Offshore Engineering and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology 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 Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Bomesc Offshore i.e., Bomesc Offshore and Kingsignal Technology go up and down completely randomly.

Pair Corralation between Bomesc Offshore and Kingsignal Technology

Assuming the 90 days trading horizon Bomesc Offshore Engineering is expected to generate 0.67 times more return on investment than Kingsignal Technology. However, Bomesc Offshore Engineering is 1.48 times less risky than Kingsignal Technology. It trades about 0.07 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about -0.01 per unit of risk. If you would invest  1,390  in Bomesc Offshore Engineering on September 11, 2025 and sell it today you would earn a total of  103.00  from holding Bomesc Offshore Engineering or generate 7.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Bomesc Offshore Engineering  vs.  Kingsignal Technology Co

 Performance 
       Timeline  
Bomesc Offshore Engi 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bomesc Offshore Engineering are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bomesc Offshore may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Kingsignal Technology 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Over the last 90 days Kingsignal Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Kingsignal Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bomesc Offshore and Kingsignal Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bomesc Offshore and Kingsignal Technology

The main advantage of trading using opposite Bomesc Offshore and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomesc Offshore position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.
The idea behind Bomesc Offshore Engineering and Kingsignal Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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