Correlation Between Bosera CMSK and Tianshui Huatian
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By analyzing existing cross correlation between Bosera CMSK Industrial and Tianshui Huatian Technology, you can compare the effects of market volatilities on Bosera CMSK and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Tianshui Huatian.
Diversification Opportunities for Bosera CMSK and Tianshui Huatian
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bosera and Tianshui is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Bosera CMSK and Tianshui Huatian
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to under-perform the Tianshui Huatian. But the stock apears to be less risky and, when comparing its historical volatility, Bosera CMSK Industrial is 2.02 times less risky than Tianshui Huatian. The stock trades about -0.03 of its potential returns per unit of risk. The Tianshui Huatian Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 910.00 in Tianshui Huatian Technology on October 28, 2024 and sell it today you would earn a total of 248.00 from holding Tianshui Huatian Technology or generate 27.25% 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. Tianshui Huatian Technology
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Tianshui Huatian Tec |
Bosera CMSK and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Tianshui Huatian
The main advantage of trading using opposite Bosera CMSK and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| Bosera CMSK vs. PetroChina Co Ltd | Bosera CMSK vs. China Mobile Limited | Bosera CMSK vs. CNOOC Limited | Bosera CMSK vs. Ping An Insurance |
| Tianshui Huatian vs. Cloud Live Technology | Tianshui Huatian vs. Nanjing Putian Telecommunications | Tianshui Huatian vs. Shenzhen Coship Electronics | Tianshui Huatian vs. Shenzhen Hifuture Electric |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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