Correlation Between Bosera CMSK and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Bosera CMSK Industrial and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Bosera CMSK and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Bosera CMSK and Zhengzhou Qianweiyangchu
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosera and Zhengzhou is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Bosera CMSK and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.37 times more return on investment than Zhengzhou Qianweiyangchu. However, Bosera CMSK Industrial is 2.69 times less risky than Zhengzhou Qianweiyangchu. It trades about 0.42 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.59 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Zhengzhou Qianweiyangchu |
Bosera CMSK and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Bosera CMSK and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Bosera CMSK vs. Jahen Household Products | Bosera CMSK vs. Anhui Shiny Electronic | Bosera CMSK vs. Guangzhou Seagull Kitchen | Bosera CMSK vs. Sinomach Automobile Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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