Correlation Between Bosera CMSK and Pengxin International
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By analyzing existing cross correlation between Bosera CMSK Industrial and Pengxin International Mining, you can compare the effects of market volatilities on Bosera CMSK and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Pengxin International.
Diversification Opportunities for Bosera CMSK and Pengxin International
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bosera and Pengxin is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Pengxin International go up and down completely randomly.
Pair Corralation between Bosera CMSK and Pengxin International
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.29 times more return on investment than Pengxin International. However, Bosera CMSK Industrial is 3.39 times less risky than Pengxin International. It trades about 0.34 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.19 per unit of risk. If you would invest 205.00 in Bosera CMSK Industrial on October 28, 2024 and sell it today you would earn a total of 16.00 from holding Bosera CMSK Industrial or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosera CMSK Industrial vs. Pengxin International Mining
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Pengxin International |
Bosera CMSK and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Pengxin International
The main advantage of trading using opposite Bosera CMSK and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Bosera CMSK vs. PetroChina Co Ltd | Bosera CMSK vs. China Mobile Limited | Bosera CMSK vs. CNOOC Limited | Bosera CMSK vs. Ping An Insurance |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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