Correlation Between Jiangsu Jinling and Bosera CMSK
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Bosera CMSK Industrial, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jiangsu Jinling with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Bosera CMSK.
Diversification Opportunities for Jiangsu Jinling and Bosera CMSK
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and Bosera is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and Bosera CMSK go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Bosera CMSK
Assuming the 90 days trading horizon Jiangsu Jinling is expected to generate 1.33 times less return on investment than Bosera CMSK. In addition to that, Jiangsu Jinling is 1.99 times more volatile than Bosera CMSK Industrial. It trades about 0.18 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.47 per unit of volatility. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Jiangsu Jinling Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bosera CMSK Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Jiangsu Jinling and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Bosera CMSK
The main advantage of trading using opposite Jiangsu Jinling and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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.The idea behind Jiangsu Jinling Sports and Bosera CMSK Industrial 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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