Correlation Between Fujian Boss and Beijing Baolande
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By analyzing existing cross correlation between Fujian Boss Software and Beijing Baolande Software, you can compare the effects of market volatilities on Fujian Boss and Beijing Baolande 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 Fujian Boss with a short position of Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Boss and Beijing Baolande.
Diversification Opportunities for Fujian Boss and Beijing Baolande
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Boss Software and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software and Fujian Boss 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 Fujian Boss Software are associated (or correlated) with Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Fujian Boss i.e., Fujian Boss and Beijing Baolande go up and down completely randomly.
Pair Corralation between Fujian Boss and Beijing Baolande
Assuming the 90 days trading horizon Fujian Boss Software is expected to under-perform the Beijing Baolande. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Boss Software is 1.76 times less risky than Beijing Baolande. The stock trades about -0.54 of its potential returns per unit of risk. The Beijing Baolande Software is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest 3,257 in Beijing Baolande Software on October 11, 2024 and sell it today you would lose (722.00) from holding Beijing Baolande Software or give up 22.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Boss Software vs. Beijing Baolande Software
Performance |
| Timeline |
| Fujian Boss Software |
| Beijing Baolande Software |
Fujian Boss and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Boss and Beijing Baolande
The main advantage of trading using opposite Fujian Boss and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Boss position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande's long position.| Fujian Boss vs. Anhui Tongguan Copper | Fujian Boss vs. Shanghai CEO Environmental | Fujian Boss vs. Sanbo Hospital Management | Fujian Boss vs. Harvest Fund Management |
| Beijing Baolande vs. Fiberhome Telecommunication Technologies | Beijing Baolande vs. Ningbo Homelink Eco iTech | Beijing Baolande vs. Sanbo Hospital Management | Beijing Baolande vs. Luolai Home Textile |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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