Correlation Between Shenzhen Hifuture and Bomin Electronics
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Bomin Electronics Co, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Bomin Electronics.
Diversification Opportunities for Shenzhen Hifuture and Bomin Electronics
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Bomin is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics and Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Bomin Electronics go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Bomin Electronics
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 1.54 times less return on investment than Bomin Electronics. In addition to that, Shenzhen Hifuture is 1.03 times more volatile than Bomin Electronics Co. It trades about 0.08 of its total potential returns per unit of risk. Bomin Electronics Co is currently generating about 0.12 per unit of volatility. If you would invest 703.00 in Bomin Electronics Co on August 29, 2024 and sell it today you would earn a total of 150.00 from holding Bomin Electronics Co or generate 21.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Bomin Electronics Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| Bomin Electronics |
Shenzhen Hifuture and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Bomin Electronics
The main advantage of trading using opposite Shenzhen Hifuture and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Shanghai Xinhua Media | Shenzhen Hifuture vs. Inly Media Co | Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Threes Company Media |
| Bomin Electronics vs. Keli Sensing Technology | Bomin Electronics vs. Ligao Foods CoLtd | Bomin Electronics vs. Kuangda Technology Group | Bomin Electronics vs. Saurer Intelligent 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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