Correlation Between Guangzhou Haozhi and Bosera CMSK
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Bosera CMSK Industrial, you can compare the effects of market volatilities on Guangzhou Haozhi and Bosera CMSK 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 Guangzhou Haozhi with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Bosera CMSK.
Diversification Opportunities for Guangzhou Haozhi and Bosera CMSK
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Bosera is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Bosera CMSK Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosera CMSK Industrial and Guangzhou Haozhi 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 Guangzhou Haozhi Industrial are associated (or correlated) with Bosera CMSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosera CMSK Industrial has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Bosera CMSK go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Bosera CMSK
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 3.8 times more return on investment than Bosera CMSK. However, Guangzhou Haozhi is 3.8 times more volatile than Bosera CMSK Industrial. It trades about 0.15 of its potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.34 per unit of risk. If you would invest 2,082 in Guangzhou Haozhi Industrial on October 28, 2024 and sell it today you would earn a total of 249.00 from holding Guangzhou Haozhi Industrial or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Bosera CMSK Industrial |
Guangzhou Haozhi and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Bosera CMSK
The main advantage of trading using opposite Guangzhou Haozhi and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Bosera CMSK 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 Bosera CMSK will offset losses from the drop in Bosera CMSK's long position.| Guangzhou Haozhi vs. Vats Liquor Chain | Guangzhou Haozhi vs. Dongfeng Automobile Co | Guangzhou Haozhi vs. Duzhe Publishing Media | Guangzhou Haozhi vs. Changjiang Publishing Media |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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