Correlation Between Tianshui Huatian and Bosera CMSK
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By analyzing existing cross correlation between Tianshui Huatian Technology and Bosera CMSK Industrial, you can compare the effects of market volatilities on Tianshui Huatian 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 Tianshui Huatian with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Bosera CMSK.
Diversification Opportunities for Tianshui Huatian and Bosera CMSK
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tianshui and Bosera is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology 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 Tianshui Huatian 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 Tianshui Huatian Technology 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 Tianshui Huatian i.e., Tianshui Huatian and Bosera CMSK go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Bosera CMSK
Assuming the 90 days trading horizon Tianshui Huatian is expected to generate 1.11 times less return on investment than Bosera CMSK. In addition to that, Tianshui Huatian is 1.6 times more volatile than Bosera CMSK Industrial. It trades about 0.23 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.41 per unit of volatility. If you would invest 208.00 in Bosera CMSK Industrial on November 5, 2024 and sell it today you would earn a total of 16.00 from holding Bosera CMSK Industrial or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Bosera CMSK Industrial |
Tianshui Huatian and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Bosera CMSK
The main advantage of trading using opposite Tianshui Huatian and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian 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.| Tianshui Huatian vs. Nanjing Putian Telecommunications | Tianshui Huatian vs. Cloud Live Technology | Tianshui Huatian vs. Shenzhen Coship Electronics | Tianshui Huatian vs. Shenzhen Hifuture Electric |
| Bosera CMSK vs. Inspur Software Co | Bosera CMSK vs. Jiamei Food Packaging | Bosera CMSK vs. Shanghai Ziyan Foods | Bosera CMSK vs. Servyou Software Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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