Correlation Between Bomin Electronics and Cultural Investment
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By analyzing existing cross correlation between Bomin Electronics Co and Cultural Investment Holdings, you can compare the effects of market volatilities on Bomin Electronics and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Cultural Investment.
Diversification Opportunities for Bomin Electronics and Cultural Investment
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomin and Cultural is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Cultural Investment go up and down completely randomly.
Pair Corralation between Bomin Electronics and Cultural Investment
Assuming the 90 days trading horizon Bomin Electronics is expected to generate 1.17 times less return on investment than Cultural Investment. In addition to that, Bomin Electronics is 1.11 times more volatile than Cultural Investment Holdings. It trades about 0.07 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.09 per unit of volatility. If you would invest 168.00 in Cultural Investment Holdings on September 3, 2024 and sell it today you would earn a total of 52.00 from holding Cultural Investment Holdings or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomin Electronics Co vs. Cultural Investment Holdings
Performance |
| Timeline |
| Bomin Electronics |
| Cultural Investment |
Bomin Electronics and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and Cultural Investment
The main advantage of trading using opposite Bomin Electronics and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Bomin Electronics vs. Beijing HuaYuanYiTong Thermal | Bomin Electronics vs. Easyhome New Retail | Bomin Electronics vs. Hunan Mendale Hometextile | Bomin Electronics vs. Minmetals Capital Co |
| Cultural Investment vs. Anji Foodstuff Co | Cultural Investment vs. Shenzhen Clou Electronics | Cultural Investment vs. Muyuan Foodstuff Co | Cultural Investment vs. Leyard Optoelectronic |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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