Correlation Between Bosera CMSK and Shenzhen Silver
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By analyzing existing cross correlation between Bosera CMSK Industrial and Shenzhen Silver Basis, you can compare the effects of market volatilities on Bosera CMSK and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Shenzhen Silver.
Diversification Opportunities for Bosera CMSK and Shenzhen Silver
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bosera and Shenzhen is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Bosera CMSK and Shenzhen Silver
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.36 times more return on investment than Shenzhen Silver. However, Bosera CMSK Industrial is 2.81 times less risky than Shenzhen Silver. It trades about 0.51 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.05 per unit of risk. If you would invest 203.00 in Bosera CMSK Industrial on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Bosera CMSK Industrial or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Shenzhen Silver Basis |
Bosera CMSK and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Shenzhen Silver
The main advantage of trading using opposite Bosera CMSK and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Bosera CMSK vs. Ye Chiu Metal | Bosera CMSK vs. Mango Excellent Media | Bosera CMSK vs. Shuhua Sports Co | Bosera CMSK vs. Wasu Media Holding |
| Shenzhen Silver vs. Chinese Universe Publishing | Shenzhen Silver vs. Jiangsu Phoenix Publishing | Shenzhen Silver vs. Shanghai Action Education | Shenzhen Silver vs. Xinhua Winshare Publishing |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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