Correlation Between Bomin Electronics and Advanced Technology
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By analyzing existing cross correlation between Bomin Electronics Co and Advanced Technology Materials, you can compare the effects of market volatilities on Bomin Electronics and Advanced Technology 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 Bomin Electronics with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Advanced Technology.
Diversification Opportunities for Bomin Electronics and Advanced Technology
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bomin and Advanced is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology and Bomin Electronics 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 Bomin Electronics Co are associated (or correlated) with Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Advanced Technology go up and down completely randomly.
Pair Corralation between Bomin Electronics and Advanced Technology
Assuming the 90 days trading horizon Bomin Electronics Co is expected to under-perform the Advanced Technology. But the stock apears to be less risky and, when comparing its historical volatility, Bomin Electronics Co is 1.47 times less risky than Advanced Technology. The stock trades about -0.05 of its potential returns per unit of risk. The Advanced Technology Materials is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,085 in Advanced Technology Materials on September 1, 2024 and sell it today you would earn a total of 136.00 from holding Advanced Technology Materials or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomin Electronics Co vs. Advanced Technology Materials
Performance |
| Timeline |
| Bomin Electronics |
| Advanced Technology |
Bomin Electronics and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and Advanced Technology
The main advantage of trading using opposite Bomin Electronics and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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