Correlation Between Bomin Electronics and PetroChina
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By analyzing existing cross correlation between Bomin Electronics Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Bomin Electronics and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and PetroChina.
Diversification Opportunities for Bomin Electronics and PetroChina
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bomin and PetroChina is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and PetroChina go up and down completely randomly.
Pair Corralation between Bomin Electronics and PetroChina
Assuming the 90 days trading horizon Bomin Electronics Co is expected to under-perform the PetroChina. In addition to that, Bomin Electronics is 2.49 times more volatile than PetroChina Co Ltd. It trades about -0.25 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.2 per unit of volatility. If you would invest 843.00 in PetroChina Co Ltd on October 9, 2024 and sell it today you would earn a total of 48.00 from holding PetroChina Co Ltd or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bomin Electronics Co vs. PetroChina Co Ltd
Performance |
| Timeline |
| Bomin Electronics |
| PetroChina |
Bomin Electronics and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and PetroChina
The main advantage of trading using opposite Bomin Electronics and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| Bomin Electronics vs. Biwin Storage Technology | Bomin Electronics vs. PetroChina Co Ltd | Bomin Electronics vs. Industrial and Commercial | Bomin Electronics vs. China Construction Bank |
| PetroChina vs. Guangdong Wens Foodstuff | PetroChina vs. Ningxia Xiaoming Agriculture | PetroChina vs. Eastroc Beverage Group | PetroChina vs. Guangzhou Seagull Kitchen |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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