Correlation Between Bosera CMSK and China Union
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By analyzing existing cross correlation between Bosera CMSK Industrial and China Union Holdings, you can compare the effects of market volatilities on Bosera CMSK and China Union 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 Bosera CMSK with a short position of China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and China Union.
Diversification Opportunities for Bosera CMSK and China Union
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosera and China is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings and Bosera CMSK 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 Bosera CMSK Industrial are associated (or correlated) with China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and China Union go up and down completely randomly.
Pair Corralation between Bosera CMSK and China Union
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.56 times more return on investment than China Union. However, Bosera CMSK Industrial is 1.8 times less risky than China Union. It trades about 0.42 of its potential returns per unit of risk. China Union Holdings is currently generating about -0.71 per unit of risk. If you would invest 199.00 in Bosera CMSK Industrial on October 14, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. China Union Holdings
Performance |
| Timeline |
| Bosera CMSK Industrial |
| China Union Holdings |
Bosera CMSK and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and China Union
The main advantage of trading using opposite Bosera CMSK and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.| Bosera CMSK vs. Shandong Sanyuan Biotechnology | Bosera CMSK vs. Jinhe Biotechnology Co | Bosera CMSK vs. Tongyu Communication | Bosera CMSK vs. Fujian Wanchen Biotechnology |
| China Union vs. Pengxin International Mining | China Union vs. Bosera CMSK Industrial | China Union vs. Hangzhou Gisway Information | China Union vs. Guangzhou Haozhi Industrial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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