Correlation Between Anhui Jinhe and Bosera CMSK
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Bosera CMSK Industrial, you can compare the effects of market volatilities on Anhui Jinhe 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 Anhui Jinhe with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Bosera CMSK.
Diversification Opportunities for Anhui Jinhe and Bosera CMSK
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Bosera is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial 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 Anhui Jinhe 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 Anhui Jinhe Industrial 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 Anhui Jinhe i.e., Anhui Jinhe and Bosera CMSK go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Bosera CMSK
Assuming the 90 days trading horizon Anhui Jinhe is expected to generate 1.57 times less return on investment than Bosera CMSK. In addition to that, Anhui Jinhe is 1.53 times more volatile than Bosera CMSK Industrial. It trades about 0.16 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.38 per unit of volatility. If you would invest 199.00 in Bosera CMSK Industrial on October 25, 2024 and sell it today you would earn a total of 18.00 from holding Bosera CMSK Industrial or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jinhe Industrial vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Bosera CMSK Industrial |
Anhui Jinhe and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Bosera CMSK
The main advantage of trading using opposite Anhui Jinhe and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe 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.| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Rongsheng Petrochemical Co |
| Bosera CMSK vs. Gansu Jiu Steel | Bosera CMSK vs. Ming Yang Smart | Bosera CMSK vs. Aba Chemicals Corp | Bosera CMSK vs. Loctek Ergonomic Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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