Correlation Between Bomin Electronics and Kunshan Guoli
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By analyzing existing cross correlation between Bomin Electronics Co and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Bomin Electronics and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Kunshan Guoli.
Diversification Opportunities for Bomin Electronics and Kunshan Guoli
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bomin and Kunshan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Bomin Electronics and Kunshan Guoli
Assuming the 90 days trading horizon Bomin Electronics Co is expected to under-perform the Kunshan Guoli. But the stock apears to be less risky and, when comparing its historical volatility, Bomin Electronics Co is 1.19 times less risky than Kunshan Guoli. The stock trades about -0.02 of its potential returns per unit of risk. The Kunshan Guoli Electronic is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,412 in Kunshan Guoli Electronic on August 31, 2024 and sell it today you would lose (2,201) from holding Kunshan Guoli Electronic or give up 34.33% 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. Kunshan Guoli Electronic
Performance |
| Timeline |
| Bomin Electronics |
| Kunshan Guoli Electronic |
Bomin Electronics and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bomin Electronics and Kunshan Guoli
The main advantage of trading using opposite Bomin Electronics and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Bomin Electronics vs. Kweichow Moutai Co | Bomin Electronics vs. NAURA Technology Group | Bomin Electronics vs. APT Medical | Bomin Electronics vs. Contemporary Amperex Technology |
| Kunshan Guoli vs. Xingguang Agricultural Mach | Kunshan Guoli vs. Henzhen Zhaowei Machinery | Kunshan Guoli vs. Guizhou Chanhen Chemical | Kunshan Guoli vs. Sinomach General Machinery |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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