Correlation Between Gan Yuan and Bosera CMSK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gan Yuan Foods and Bosera CMSK Industrial, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Bosera CMSK.
Diversification Opportunities for Gan Yuan and Bosera CMSK
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Bosera is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods 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 Gan Yuan 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 Gan Yuan Foods 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 Gan Yuan i.e., Gan Yuan and Bosera CMSK go up and down completely randomly.
Pair Corralation between Gan Yuan and Bosera CMSK
Assuming the 90 days trading horizon Gan Yuan is expected to generate 3.79 times less return on investment than Bosera CMSK. In addition to that, Gan Yuan is 2.58 times more volatile than Bosera CMSK Industrial. It trades about 0.04 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 7, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Gan Yuan Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Bosera CMSK Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Gan Yuan and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Bosera CMSK
The main advantage of trading using opposite Gan Yuan and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.The idea behind Gan Yuan Foods and Bosera CMSK Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |