Correlation Between Bosera CMSK and Luyin Investment
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By analyzing existing cross correlation between Bosera CMSK Industrial and Luyin Investment Group, you can compare the effects of market volatilities on Bosera CMSK and Luyin Investment 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Luyin Investment.
Diversification Opportunities for Bosera CMSK and Luyin Investment
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bosera and Luyin is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Luyin Investment go up and down completely randomly.
Pair Corralation between Bosera CMSK and Luyin Investment
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.39 times more return on investment than Luyin Investment. However, Bosera CMSK Industrial is 2.54 times less risky than Luyin Investment. It trades about 0.38 of its potential returns per unit of risk. Luyin Investment Group is currently generating about -0.04 per unit of risk. If you would invest 194.00 in Bosera CMSK Industrial on October 30, 2024 and sell it today you would earn a total of 30.00 from holding Bosera CMSK Industrial or generate 15.46% 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. Luyin Investment Group
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Luyin Investment |
Bosera CMSK and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Luyin Investment
The main advantage of trading using opposite Bosera CMSK and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.| Bosera CMSK vs. Gan Yuan Foods | Bosera CMSK vs. Namchow Food Group | Bosera CMSK vs. Guangdong Qunxing Toys | Bosera CMSK vs. Xiwang Foodstuffs Co |
| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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