Correlation Between Bomin Electronics and Gansu Jiu
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By analyzing existing cross correlation between Bomin Electronics Co and Gansu Jiu Steel, you can compare the effects of market volatilities on Bomin Electronics and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Gansu Jiu.
Diversification Opportunities for Bomin Electronics and Gansu Jiu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bomin and Gansu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Gansu Jiu go up and down completely randomly.
Pair Corralation between Bomin Electronics and Gansu Jiu
Assuming the 90 days trading horizon Bomin Electronics Co is expected to under-perform the Gansu Jiu. But the stock apears to be less risky and, when comparing its historical volatility, Bomin Electronics Co is 1.13 times less risky than Gansu Jiu. The stock trades about -0.07 of its potential returns per unit of risk. The Gansu Jiu Steel is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 179.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Gansu Jiu Steel or generate 7.82% 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. Gansu Jiu Steel
Performance |
| Timeline |
| Bomin Electronics |
| Gansu Jiu Steel |
Bomin Electronics and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and Gansu Jiu
The main advantage of trading using opposite Bomin Electronics and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Bomin Electronics vs. Industrial and Commercial | Bomin Electronics vs. Agricultural Bank of | Bomin Electronics vs. China Construction Bank | Bomin Electronics vs. Bank of China |
| Gansu Jiu vs. China Construction Bank | Gansu Jiu vs. Industrial Bank Co | Gansu Jiu vs. Gansu Huangtai Wine marketing | Gansu Jiu vs. Guosheng Financial Holding |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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