Correlation Between Bosera CMSK and Chengdu Xingrong
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By analyzing existing cross correlation between Bosera CMSK Industrial and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Bosera CMSK and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Chengdu Xingrong.
Diversification Opportunities for Bosera CMSK and Chengdu Xingrong
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosera and Chengdu is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Bosera CMSK and Chengdu Xingrong
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.69 times more return on investment than Chengdu Xingrong. However, Bosera CMSK Industrial is 1.45 times less risky than Chengdu Xingrong. It trades about 0.52 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.12 per unit of risk. If you would invest 202.00 in Bosera CMSK Industrial on November 1, 2024 and sell it today you would earn a total of 22.00 from holding Bosera CMSK Industrial or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Chengdu Xingrong Inv |
Bosera CMSK and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Chengdu Xingrong
The main advantage of trading using opposite Bosera CMSK and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Bosera CMSK vs. Chengdu Xingrong Investment | Bosera CMSK vs. Maoming Petro Chemical Shihua | Bosera CMSK vs. Lier Chemical Co | Bosera CMSK vs. Beijing Mainstreets Investment |
| Chengdu Xingrong vs. Industrial and Commercial | Chengdu Xingrong vs. China Construction Bank | Chengdu Xingrong vs. Agricultural Bank of | Chengdu Xingrong vs. Bank of China |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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