Correlation Between Bosera CMSK and Xingguang Agricultural
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By analyzing existing cross correlation between Bosera CMSK Industrial and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Bosera CMSK and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosera CMSK and Xingguang Agricultural.
Diversification Opportunities for Bosera CMSK and Xingguang Agricultural
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosera and Xingguang is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bosera CMSK Industrial and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Bosera CMSK i.e., Bosera CMSK and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Bosera CMSK and Xingguang Agricultural
Assuming the 90 days trading horizon Bosera CMSK Industrial is expected to generate 0.19 times more return on investment than Xingguang Agricultural. However, Bosera CMSK Industrial is 5.16 times less risky than Xingguang Agricultural. It trades about 0.36 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.27 per unit of risk. If you would invest 195.00 in Bosera CMSK Industrial on October 11, 2024 and sell it today you would earn a total of 14.00 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. Xingguang Agricultural Mach
Performance |
| Timeline |
| Bosera CMSK Industrial |
| Xingguang Agricultural |
Bosera CMSK and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosera CMSK and Xingguang Agricultural
The main advantage of trading using opposite Bosera CMSK and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosera CMSK position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Bosera CMSK vs. Impulse Qingdao Health | Bosera CMSK vs. Postal Savings Bank | Bosera CMSK vs. Financial Street Holdings | Bosera CMSK vs. Everjoy Health Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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