Correlation Between Bosera CMSK and Hubeiyichang Transportation
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By analyzing existing cross correlation between Bosera CMSK Industrial and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Bosera CMSK and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Hubeiyichang Transportation.
Diversification Opportunities for Bosera CMSK and Hubeiyichang Transportation
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bosera and Hubeiyichang is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Bosera CMSK and Hubeiyichang Transportation
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.87 times more return on investment than Hubeiyichang Transportation. However, Bosera CMSK Industrial is 1.16 times less risky than Hubeiyichang Transportation. It trades about 0.41 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.36 per unit of risk. If you would invest 208.00 in Bosera CMSK Industrial on November 6, 2024 and sell it today you would earn a total of 16.00 from holding Bosera CMSK Industrial or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Hubeiyichang Transportation |
Bosera CMSK and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Hubeiyichang Transportation
The main advantage of trading using opposite Bosera CMSK and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Bosera CMSK vs. MayAir Technology Co | Bosera CMSK vs. Union Semiconductor Co | Bosera CMSK vs. Advanced Technology Materials | Bosera CMSK vs. NBTM New Materials |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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