Correlation Between Bomin Electronics and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bomin Electronics Co and Dow Jones Industrial, you can compare the effects of market volatilities on Bomin Electronics and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bomin Electronics and Dow Jones.
Diversification Opportunities for Bomin Electronics and Dow Jones
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bomin and Dow is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bomin Electronics Co and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Bomin Electronics i.e., Bomin Electronics and Dow Jones go up and down completely randomly.
Pair Corralation between Bomin Electronics and Dow Jones
Assuming the 90 days trading horizon Bomin Electronics Co is expected to generate 4.65 times more return on investment than Dow Jones. However, Bomin Electronics is 4.65 times more volatile than Dow Jones Industrial. It trades about 0.13 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.14 per unit of risk. If you would invest 713.00 in Bomin Electronics Co on August 25, 2024 and sell it today you would earn a total of 134.00 from holding Bomin Electronics Co or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Bomin Electronics Co vs. Dow Jones Industrial
Performance |
| Timeline |
Bomin Electronics and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bomin Electronics Co
Pair trading matchups for Bomin Electronics
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bomin Electronics and Dow Jones
The main advantage of trading using opposite Bomin Electronics and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bomin Electronics position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Bomin Electronics vs. Nanjing Putian Telecommunications | Bomin Electronics vs. Shenzhen Hifuture Electric | Bomin Electronics vs. Shenyang Huitian Thermal | Bomin Electronics vs. Jiangsu Xinning Modern |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |