Correlation Between Bosera CMSK and Gan Yuan
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By analyzing existing cross correlation between Bosera CMSK Industrial and Gan Yuan Foods, you can compare the effects of market volatilities on Bosera CMSK and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Gan Yuan.
Diversification Opportunities for Bosera CMSK and Gan Yuan
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bosera and Gan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Gan Yuan go up and down completely randomly.
Pair Corralation between Bosera CMSK and Gan Yuan
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.37 times more return on investment than Gan Yuan. However, Bosera CMSK Industrial is 2.7 times less risky than Gan Yuan. It trades about 0.4 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about -0.03 per unit of risk. If you would invest 205.00 in Bosera CMSK Industrial on October 31, 2024 and sell it today you would earn a total of 19.00 from holding Bosera CMSK Industrial or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. Gan Yuan Foods
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Gan Yuan Foods |
Bosera CMSK and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Gan Yuan
The main advantage of trading using opposite Bosera CMSK and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Bosera CMSK vs. China World Trade | Bosera CMSK vs. XiAn Dagang Road | Bosera CMSK vs. Caihong Display Devices | Bosera CMSK vs. Ping An Insurance |
| Gan Yuan vs. Zhejiang JIULI Hi tech | Gan Yuan vs. China Greatwall Computer | Gan Yuan vs. Sinomach Automobile Co | Gan Yuan vs. Changchun Engley Automobile |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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