Correlation Between Bomin Electronics and Shenzhen Noposion
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By analyzing existing cross correlation between Bomin Electronics Co and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Bomin Electronics and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Shenzhen Noposion.
Diversification Opportunities for Bomin Electronics and Shenzhen Noposion
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bomin and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Bomin Electronics and Shenzhen Noposion
Assuming the 90 days trading horizon Bomin Electronics Co is expected to under-perform the Shenzhen Noposion. In addition to that, Bomin Electronics is 1.28 times more volatile than Shenzhen Noposion Agrochemicals. It trades about -0.01 of its total potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.03 per unit of volatility. If you would invest 808.00 in Shenzhen Noposion Agrochemicals on August 26, 2024 and sell it today you would earn a total of 141.00 from holding Shenzhen Noposion Agrochemicals or generate 17.45% 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. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Bomin Electronics |
| Shenzhen Noposion |
Bomin Electronics and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and Shenzhen Noposion
The main advantage of trading using opposite Bomin Electronics and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Bomin Electronics vs. Nanjing Putian Telecommunications | Bomin Electronics vs. Shenzhen Hifuture Electric | Bomin Electronics vs. Shenyang Huitian Thermal | Bomin Electronics vs. Jiangsu Xinning Modern |
| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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