Correlation Between Hunan Nanling and Bomin Electronics
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By analyzing existing cross correlation between Hunan Nanling Industrial and Bomin Electronics Co, you can compare the effects of market volatilities on Hunan Nanling and Bomin Electronics 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 Hunan Nanling with a short position of Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Nanling and Bomin Electronics.
Diversification Opportunities for Hunan Nanling and Bomin Electronics
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Bomin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Nanling Industrial and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics and Hunan Nanling 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 Hunan Nanling Industrial are associated (or correlated) with Bomin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomin Electronics has no effect on the direction of Hunan Nanling i.e., Hunan Nanling and Bomin Electronics go up and down completely randomly.
Pair Corralation between Hunan Nanling and Bomin Electronics
Assuming the 90 days trading horizon Hunan Nanling Industrial is expected to under-perform the Bomin Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Nanling Industrial is 1.25 times less risky than Bomin Electronics. The stock trades about -0.05 of its potential returns per unit of risk. The Bomin Electronics Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 836.00 in Bomin Electronics Co on August 31, 2024 and sell it today you would earn a total of 29.00 from holding Bomin Electronics Co or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Nanling Industrial vs. Bomin Electronics Co
Performance |
| Timeline |
| Hunan Nanling Industrial |
| Bomin Electronics |
Hunan Nanling and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Nanling and Bomin Electronics
The main advantage of trading using opposite Hunan Nanling and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Nanling position performs unexpectedly, Bomin Electronics 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 Bomin Electronics will offset losses from the drop in Bomin Electronics' long position.| Hunan Nanling vs. China Publishing Media | Hunan Nanling vs. Jiangsu Phoenix Publishing | Hunan Nanling vs. Shanghai Material Trading | Hunan Nanling vs. Offcn Education Technology |
| Bomin Electronics vs. Kweichow Moutai Co | Bomin Electronics vs. NAURA Technology Group | Bomin Electronics vs. APT Medical | Bomin Electronics vs. Contemporary Amperex Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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