Correlation Between Maoming Petro and Bosera CMSK
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Bosera CMSK Industrial, you can compare the effects of market volatilities on Maoming Petro 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 Maoming Petro with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Bosera CMSK.
Diversification Opportunities for Maoming Petro and Bosera CMSK
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maoming and Bosera is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua 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 Maoming Petro 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 Maoming Petro Chemical Shihua 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 Maoming Petro i.e., Maoming Petro and Bosera CMSK go up and down completely randomly.
Pair Corralation between Maoming Petro and Bosera CMSK
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Bosera CMSK. In addition to that, Maoming Petro is 1.59 times more volatile than Bosera CMSK Industrial. It trades about -0.07 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Maoming Petro Chemical |
| Bosera CMSK Industrial |
Maoming Petro and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Bosera CMSK
The main advantage of trading using opposite Maoming Petro and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro 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.| Maoming Petro vs. Suzhou Weizhixiang Food | Maoming Petro vs. Namchow Food Group | Maoming Petro vs. China Asset Management | Maoming Petro vs. Nanning Chemical Industry |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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