Correlation Between Shenzhen Noposion and Bomin Electronics
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Bomin Electronics Co, you can compare the effects of market volatilities on Shenzhen Noposion 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 Noposion with a short position of Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Bomin Electronics.
Diversification Opportunities for Shenzhen Noposion and Bomin Electronics
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Bomin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Noposion 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 Noposion Agrochemicals 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 Noposion i.e., Shenzhen Noposion and Bomin Electronics go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Bomin Electronics
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.78 times more return on investment than Bomin Electronics. However, Shenzhen Noposion Agrochemicals is 1.28 times less risky than Bomin Electronics. It trades about 0.03 of its potential returns per unit of risk. Bomin Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 808.00 in Shenzhen Noposion Agrochemicals on August 26, 2024 and sell it today you would earn a total of 141.00 from holding Shenzhen Noposion Agrochemicals or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Bomin Electronics Co
Performance |
| Timeline |
| Shenzhen Noposion |
| Bomin Electronics |
Shenzhen Noposion and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Bomin Electronics
The main advantage of trading using opposite Shenzhen Noposion and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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 Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
| Bomin Electronics vs. Nanjing Putian Telecommunications | Bomin Electronics vs. Shenzhen Hifuture Electric | Bomin Electronics vs. Shenyang Huitian Thermal | Bomin Electronics vs. Jiangsu Xinning Modern |
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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