Correlation Between Beijing SPC and Bomin Electronics
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By analyzing existing cross correlation between Beijing SPC Environment and Bomin Electronics Co, you can compare the effects of market volatilities on Beijing SPC 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 Beijing SPC with a short position of Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Bomin Electronics.
Diversification Opportunities for Beijing SPC and Bomin Electronics
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Bomin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics and Beijing SPC 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 Beijing SPC Environment 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 Beijing SPC i.e., Beijing SPC and Bomin Electronics go up and down completely randomly.
Pair Corralation between Beijing SPC and Bomin Electronics
Assuming the 90 days trading horizon Beijing SPC Environment is expected to under-perform the Bomin Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Beijing SPC Environment is 1.06 times less risky than Bomin Electronics. The stock trades about -0.07 of its potential returns per unit of risk. The Bomin Electronics Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 853.00 in Bomin Electronics Co on September 27, 2024 and sell it today you would earn a total of 23.00 from holding Bomin Electronics Co or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Bomin Electronics Co
Performance |
| Timeline |
| Beijing SPC Environment |
| Bomin Electronics |
Beijing SPC and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Bomin Electronics
The main advantage of trading using opposite Beijing SPC and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC 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.| Beijing SPC vs. Kweichow Moutai Co | Beijing SPC vs. Contemporary Amperex Technology | Beijing SPC vs. G bits Network Technology | Beijing SPC vs. BYD Co Ltd |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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