Correlation Between Shanghai Zhangjiang and Bomin Electronics
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By analyzing existing cross correlation between Shanghai Zhangjiang Hi Tech and Bomin Electronics Co, you can compare the effects of market volatilities on Shanghai Zhangjiang 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 Shanghai Zhangjiang with a short position of Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Zhangjiang and Bomin Electronics.
Diversification Opportunities for Shanghai Zhangjiang and Bomin Electronics
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Bomin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Zhangjiang Hi Tech and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics and Shanghai Zhangjiang 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 Shanghai Zhangjiang Hi Tech 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 Shanghai Zhangjiang i.e., Shanghai Zhangjiang and Bomin Electronics go up and down completely randomly.
Pair Corralation between Shanghai Zhangjiang and Bomin Electronics
Assuming the 90 days trading horizon Shanghai Zhangjiang Hi Tech is expected to generate 1.46 times more return on investment than Bomin Electronics. However, Shanghai Zhangjiang is 1.46 times more volatile than Bomin Electronics Co. It trades about 0.21 of its potential returns per unit of risk. Bomin Electronics Co is currently generating about 0.13 per unit of risk. If you would invest 1,687 in Shanghai Zhangjiang Hi Tech on September 2, 2024 and sell it today you would earn a total of 1,160 from holding Shanghai Zhangjiang Hi Tech or generate 68.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Zhangjiang Hi Tech vs. Bomin Electronics Co
Performance |
| Timeline |
| Shanghai Zhangjiang |
| Bomin Electronics |
Shanghai Zhangjiang and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Zhangjiang and Bomin Electronics
The main advantage of trading using opposite Shanghai Zhangjiang and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Zhangjiang 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.| Shanghai Zhangjiang vs. Shanghai Yanpu Metal | Shanghai Zhangjiang vs. Guangdong Jingyi Metal | Shanghai Zhangjiang vs. Youyou Foods Co | Shanghai Zhangjiang vs. Suzhou Weizhixiang Food |
| Bomin Electronics vs. Rising Nonferrous Metals | Bomin Electronics vs. Shenwu Energy Saving | Bomin Electronics vs. Ping An Insurance | Bomin Electronics vs. Sino Platinum Metals 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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