Correlation Between Bomin Electronics and Guangzhou KingTeller
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bomin Electronics Co and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Bomin Electronics and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Guangzhou KingTeller.
Diversification Opportunities for Bomin Electronics and Guangzhou KingTeller
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bomin and Guangzhou is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Bomin Electronics and Guangzhou KingTeller
Assuming the 90 days trading horizon Bomin Electronics Co is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Bomin Electronics Co is 1.21 times less risky than Guangzhou KingTeller. The stock trades about -0.03 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 336.00 in Guangzhou KingTeller Technology on October 15, 2024 and sell it today you would earn a total of 116.00 from holding Guangzhou KingTeller Technology or generate 34.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomin Electronics Co vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Bomin Electronics |
| Guangzhou KingTeller |
Bomin Electronics and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and Guangzhou KingTeller
The main advantage of trading using opposite Bomin Electronics and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Bomin Electronics vs. Aba Chemicals Corp | Bomin Electronics vs. Vohringer Home Technology | Bomin Electronics vs. Mengtian Home Group | Bomin Electronics vs. Guangzhou Dongfang Hotel |
| Guangzhou KingTeller vs. HUAQIN TECHNOLOGY LTD | Guangzhou KingTeller vs. Tianjin Hi Tech Development | Guangzhou KingTeller vs. CGN Nuclear Technology | Guangzhou KingTeller vs. Eyebright Medical Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |