Correlation Between Bosera CMSK and Anji Foodstuff
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By analyzing existing cross correlation between Bosera CMSK Industrial and Anji Foodstuff Co, you can compare the effects of market volatilities on Bosera CMSK and Anji Foodstuff 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 Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Anji Foodstuff.
Diversification Opportunities for Bosera CMSK and Anji Foodstuff
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosera and Anji is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff 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 Anji Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Foodstuff has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Bosera CMSK and Anji Foodstuff
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.56 times more return on investment than Anji Foodstuff. However, Bosera CMSK Industrial is 1.77 times less risky than Anji Foodstuff. It trades about 0.41 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.14 per unit of risk. If you would invest 209.00 in Bosera CMSK Industrial on November 9, 2024 and sell it today you would earn a total of 15.00 from holding Bosera CMSK Industrial or generate 7.18% 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. Anji Foodstuff Co
Performance |
| Timeline |
| Bosera CMSK Industrial |
Risk-Adjusted Performance
Solid
Weak | Strong |
| Anji Foodstuff |
Risk-Adjusted Performance
Weak
Weak | Strong |
Bosera CMSK and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Anji Foodstuff
The main advantage of trading using opposite Bosera CMSK and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Anji Foodstuff 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 Anji Foodstuff will offset losses from the drop in Anji Foodstuff's long position.The idea behind Bosera CMSK Industrial and Anji Foodstuff Co 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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