Correlation Between Bomin Electronics and CITIC Metal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bomin Electronics Co and CITIC Metal Co, you can compare the effects of market volatilities on Bomin Electronics and CITIC Metal 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 CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and CITIC Metal.
Diversification Opportunities for Bomin Electronics and CITIC Metal
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bomin and CITIC is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal 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 CITIC Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Metal has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and CITIC Metal go up and down completely randomly.
Pair Corralation between Bomin Electronics and CITIC Metal
Assuming the 90 days trading horizon Bomin Electronics Co is expected to generate 1.74 times more return on investment than CITIC Metal. However, Bomin Electronics is 1.74 times more volatile than CITIC Metal Co. It trades about -0.07 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.17 per unit of risk. If you would invest 955.00 in Bomin Electronics Co on September 13, 2024 and sell it today you would lose (36.00) from holding Bomin Electronics Co or give up 3.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomin Electronics Co vs. CITIC Metal Co
Performance |
| Timeline |
| Bomin Electronics |
| CITIC Metal |
Bomin Electronics and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and CITIC Metal
The main advantage of trading using opposite Bomin Electronics and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, CITIC Metal 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 CITIC Metal will offset losses from the drop in CITIC Metal'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 |
| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |