Correlation Between Bomin Electronics and Industrial Bank
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By analyzing existing cross correlation between Bomin Electronics Co and Industrial Bank Co, you can compare the effects of market volatilities on Bomin Electronics and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Industrial Bank.
Diversification Opportunities for Bomin Electronics and Industrial Bank
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bomin and Industrial is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Industrial Bank go up and down completely randomly.
Pair Corralation between Bomin Electronics and Industrial Bank
Assuming the 90 days trading horizon Bomin Electronics Co is expected to generate 1.9 times more return on investment than Industrial Bank. However, Bomin Electronics is 1.9 times more volatile than Industrial Bank Co. It trades about 0.45 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.06 per unit of risk. If you would invest 757.00 in Bomin Electronics Co on November 27, 2024 and sell it today you would earn a total of 105.00 from holding Bomin Electronics Co or generate 13.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomin Electronics Co vs. Industrial Bank Co
Performance |
| Timeline |
| Bomin Electronics |
| Industrial Bank |
Bomin Electronics and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and Industrial Bank
The main advantage of trading using opposite Bomin Electronics and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Bomin Electronics vs. Huawen Media Investment | Bomin Electronics vs. Guizhou BroadcastingTV Info | Bomin Electronics vs. Anshan Senyuan Road | Bomin Electronics vs. Beijing Mainstreets Investment |
| Industrial Bank vs. Heilongjiang Publishing Media | Industrial Bank vs. Shanghai Action Education | Industrial Bank vs. Xinhua Winshare Publishing | Industrial Bank vs. Dezhan HealthCare Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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