Correlation Between Bosera CMSK and Industrial
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By analyzing existing cross correlation between Bosera CMSK Industrial and Industrial and Commercial, you can compare the effects of market volatilities on Bosera CMSK and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Industrial.
Diversification Opportunities for Bosera CMSK and Industrial
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bosera and Industrial is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Industrial go up and down completely randomly.
Pair Corralation between Bosera CMSK and Industrial
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.78 times more return on investment than Industrial. However, Bosera CMSK Industrial is 1.28 times less risky than Industrial. It trades about 0.45 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.01 per unit of risk. If you would invest 207.00 in Bosera CMSK Industrial on November 8, 2024 and sell it today you would earn a total of 17.00 from holding Bosera CMSK Industrial or generate 8.21% 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. Industrial and Commercial
Performance |
| Timeline |
| Bosera CMSK Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Industrial and Commercial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Bosera CMSK and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Industrial
The main advantage of trading using opposite Bosera CMSK and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.The idea behind Bosera CMSK Industrial and Industrial and Commercial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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