Correlation Between Bus Online and Bomin Electronics
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By analyzing existing cross correlation between Bus Online Co and Bomin Electronics Co, you can compare the effects of market volatilities on Bus Online 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 Bus Online with a short position of Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Bomin Electronics.
Diversification Opportunities for Bus Online and Bomin Electronics
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Bomin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics and Bus Online 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 Bus Online Co 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 Bus Online i.e., Bus Online and Bomin Electronics go up and down completely randomly.
Pair Corralation between Bus Online and Bomin Electronics
Assuming the 90 days trading horizon Bus Online Co is expected to generate 0.79 times more return on investment than Bomin Electronics. However, Bus Online Co is 1.27 times less risky than Bomin Electronics. It trades about 0.09 of its potential returns per unit of risk. Bomin Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 485.00 in Bus Online Co on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Bus Online Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Bomin Electronics Co
Performance |
| Timeline |
| Bus Online |
| Bomin Electronics |
Bus Online and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Bomin Electronics
The main advantage of trading using opposite Bus Online and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online 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.| Bus Online vs. Industrial and Commercial | Bus Online vs. Kweichow Moutai Co | Bus Online vs. Agricultural Bank of | Bus Online vs. China Mobile Limited |
| Bomin Electronics vs. Cultural Investment Holdings | Bomin Electronics vs. Gome Telecom Equipment | Bomin Electronics vs. Bus Online Co | Bomin Electronics vs. Zotye Automobile Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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