Correlation Between Guangdong Liantai and Bomin Electronics
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By analyzing existing cross correlation between Guangdong Liantai Environmental and Bomin Electronics Co, you can compare the effects of market volatilities on Guangdong Liantai 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 Guangdong Liantai with a short position of Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Liantai and Bomin Electronics.
Diversification Opportunities for Guangdong Liantai and Bomin Electronics
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Bomin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Liantai Environmenta and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics and Guangdong Liantai 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 Guangdong Liantai Environmental 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 Guangdong Liantai i.e., Guangdong Liantai and Bomin Electronics go up and down completely randomly.
Pair Corralation between Guangdong Liantai and Bomin Electronics
Assuming the 90 days trading horizon Guangdong Liantai Environmental is expected to generate 0.68 times more return on investment than Bomin Electronics. However, Guangdong Liantai Environmental is 1.47 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 -0.03 per unit of risk. If you would invest 576.00 in Guangdong Liantai Environmental on October 15, 2024 and sell it today you would lose (202.00) from holding Guangdong Liantai Environmental or give up 35.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Liantai Environmenta vs. Bomin Electronics Co
Performance |
| Timeline |
| Guangdong Liantai |
| Bomin Electronics |
Guangdong Liantai and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Liantai and Bomin Electronics
The main advantage of trading using opposite Guangdong Liantai and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Liantai 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.| Guangdong Liantai vs. Western Metal Materials | Guangdong Liantai vs. Cultural Investment Holdings | Guangdong Liantai vs. Xinjiang Baodi Mining | Guangdong Liantai vs. Beijing Shunxin Agriculture |
| Bomin Electronics vs. Aba Chemicals Corp | Bomin Electronics vs. Vohringer Home Technology | Bomin Electronics vs. Mengtian Home Group | Bomin Electronics vs. Guangzhou Dongfang Hotel |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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