Correlation Between Bosera CMSK and Soochow Suzhou
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By analyzing existing cross correlation between Bosera CMSK Industrial and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Bosera CMSK and Soochow Suzhou 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 Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Soochow Suzhou.
Diversification Opportunities for Bosera CMSK and Soochow Suzhou
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bosera and Soochow is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Soochow Suzhou Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Suzhou Industrial 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 Soochow Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Suzhou Industrial has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Bosera CMSK and Soochow Suzhou
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 1.47 times more return on investment than Soochow Suzhou. However, Bosera CMSK is 1.47 times more volatile than Soochow Suzhou Industrial. It trades about 0.42 of its potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about 0.27 per unit of risk. If you would invest 199.00 in Bosera CMSK Industrial on October 14, 2024 and sell it today you would earn a total of 18.00 from holding Bosera CMSK Industrial or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Soochow Suzhou Industrial |
Bosera CMSK and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Soochow Suzhou
The main advantage of trading using opposite Bosera CMSK and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Soochow Suzhou 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 Soochow Suzhou will offset losses from the drop in Soochow Suzhou's long position.| Bosera CMSK vs. Jahen Household Products | Bosera CMSK vs. Anhui Shiny Electronic | Bosera CMSK vs. Guangzhou Seagull Kitchen | Bosera CMSK vs. Sinomach Automobile Co |
| Soochow Suzhou vs. Air China Ltd | Soochow Suzhou vs. Mango Excellent Media | Soochow Suzhou vs. HUAQIN TECHNOLOGY LTD | Soochow Suzhou vs. Beijing Enlight Media |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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