Correlation Between Beijing Yuanlong and Bosera CMSK
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By analyzing existing cross correlation between Beijing Yuanlong Yato and Bosera CMSK Industrial, you can compare the effects of market volatilities on Beijing Yuanlong 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 Beijing Yuanlong with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yuanlong and Bosera CMSK.
Diversification Opportunities for Beijing Yuanlong and Bosera CMSK
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Bosera is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yuanlong Yato 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 Beijing Yuanlong 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 Beijing Yuanlong Yato 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 Beijing Yuanlong i.e., Beijing Yuanlong and Bosera CMSK go up and down completely randomly.
Pair Corralation between Beijing Yuanlong and Bosera CMSK
Assuming the 90 days trading horizon Beijing Yuanlong Yato is expected to generate 5.51 times more return on investment than Bosera CMSK. However, Beijing Yuanlong is 5.51 times more volatile than Bosera CMSK Industrial. It trades about 0.15 of its potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.45 per unit of risk. If you would invest 1,506 in Beijing Yuanlong Yato on November 4, 2024 and sell it today you would earn a total of 211.00 from holding Beijing Yuanlong Yato or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yuanlong Yato vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Beijing Yuanlong Yato |
| Bosera CMSK Industrial |
Beijing Yuanlong and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yuanlong and Bosera CMSK
The main advantage of trading using opposite Beijing Yuanlong and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yuanlong 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.| Beijing Yuanlong vs. Miracll Chemicals Co | Beijing Yuanlong vs. Vats Liquor Chain | Beijing Yuanlong vs. Shandong Polymer Biochemicals | Beijing Yuanlong vs. Xiandai Investment Co |
| Bosera CMSK vs. Beingmate Baby Child | Bosera CMSK vs. Shenzhen Zqgame | Bosera CMSK vs. Yankershop Food Co | Bosera CMSK vs. Suzhou Weizhixiang Food |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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