Correlation Between Chengdu Xingrong and Bosera CMSK
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Bosera CMSK Industrial, you can compare the effects of market volatilities on Chengdu Xingrong and Bosera CMSK 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 Chengdu Xingrong with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Bosera CMSK.
Diversification Opportunities for Chengdu Xingrong and Bosera CMSK
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and Bosera is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Bosera CMSK Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosera CMSK Industrial and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Bosera CMSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosera CMSK Industrial has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Bosera CMSK go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Bosera CMSK
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the Bosera CMSK. In addition to that, Chengdu Xingrong is 1.45 times more volatile than Bosera CMSK Industrial. It trades about -0.12 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.52 per unit of volatility. If you would invest 202.00 in Bosera CMSK Industrial on November 1, 2024 and sell it today you would earn a total of 22.00 from holding Bosera CMSK Industrial or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Bosera CMSK Industrial |
Chengdu Xingrong and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Bosera CMSK
The main advantage of trading using opposite Chengdu Xingrong and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Bosera CMSK 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 Bosera CMSK will offset losses from the drop in Bosera CMSK's long position.| Chengdu Xingrong vs. Industrial and Commercial | Chengdu Xingrong vs. China Construction Bank | Chengdu Xingrong vs. Agricultural Bank of | Chengdu Xingrong vs. Bank of China |
| Bosera CMSK vs. Chengdu Xingrong Investment | Bosera CMSK vs. Maoming Petro Chemical Shihua | Bosera CMSK vs. Lier Chemical Co | Bosera CMSK vs. Beijing Mainstreets Investment |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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