Correlation Between Bosera CMSK and Lianhe Chemical
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By analyzing existing cross correlation between Bosera CMSK Industrial and Lianhe Chemical Technology, you can compare the effects of market volatilities on Bosera CMSK and Lianhe Chemical 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 Lianhe Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Lianhe Chemical.
Diversification Opportunities for Bosera CMSK and Lianhe Chemical
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bosera and Lianhe is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Lianhe Chemical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lianhe Chemical Tech 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 Lianhe Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lianhe Chemical Tech has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Lianhe Chemical go up and down completely randomly.
Pair Corralation between Bosera CMSK and Lianhe Chemical
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.5 times more return on investment than Lianhe Chemical. However, Bosera CMSK Industrial is 1.99 times less risky than Lianhe Chemical. It trades about 0.09 of its potential returns per unit of risk. Lianhe Chemical Technology is currently generating about -0.03 per unit of risk. If you would invest 163.00 in Bosera CMSK Industrial on October 16, 2024 and sell it today you would earn a total of 53.00 from holding Bosera CMSK Industrial or generate 32.52% 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. Lianhe Chemical Technology
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Lianhe Chemical Tech |
Bosera CMSK and Lianhe Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Lianhe Chemical
The main advantage of trading using opposite Bosera CMSK and Lianhe Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Lianhe Chemical 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 Lianhe Chemical will offset losses from the drop in Lianhe Chemical's long position.| Bosera CMSK vs. Shandong Iron and | Bosera CMSK vs. Eit Environmental Development | Bosera CMSK vs. SSAW Hotels Resorts | Bosera CMSK vs. Air China Ltd |
| Lianhe Chemical vs. Bosera CMSK Industrial | Lianhe Chemical vs. Hengli Industrial Development | Lianhe Chemical vs. Universal Scientific Industrial | Lianhe Chemical vs. Hengdian Entertainment 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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