Correlation Between Bomin Electronics and Runjian Communication
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By analyzing existing cross correlation between Bomin Electronics Co and Runjian Communication Co, you can compare the effects of market volatilities on Bomin Electronics and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Runjian Communication.
Diversification Opportunities for Bomin Electronics and Runjian Communication
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bomin and Runjian is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Runjian Communication go up and down completely randomly.
Pair Corralation between Bomin Electronics and Runjian Communication
Assuming the 90 days trading horizon Bomin Electronics Co is expected to under-perform the Runjian Communication. But the stock apears to be less risky and, when comparing its historical volatility, Bomin Electronics Co is 1.72 times less risky than Runjian Communication. The stock trades about -0.06 of its potential returns per unit of risk. The Runjian Communication Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3,532 in Runjian Communication Co on November 30, 2024 and sell it today you would earn a total of 2,098 from holding Runjian Communication Co or generate 59.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomin Electronics Co vs. Runjian Communication Co
Performance |
| Timeline |
| Bomin Electronics |
| Runjian Communication |
Bomin Electronics and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and Runjian Communication
The main advantage of trading using opposite Bomin Electronics and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Bomin Electronics vs. Wintao Communications Co | Bomin Electronics vs. Suzhou Mingzhi Technology | Bomin Electronics vs. Tonghua Grape Wine | Bomin Electronics vs. China Greatwall Computer |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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