Correlation Between Shandong Sanyuan and Bosera CMSK
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Bosera CMSK Industrial, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Bosera CMSK.
Diversification Opportunities for Shandong Sanyuan and Bosera CMSK
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Bosera is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology 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 Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and Bosera CMSK go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Bosera CMSK
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to under-perform the Bosera CMSK. In addition to that, Shandong Sanyuan is 2.58 times more volatile than Bosera CMSK Industrial. It trades about -0.07 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.21 per unit of volatility. If you would invest 196.00 in Bosera CMSK Industrial on October 14, 2024 and sell it today you would earn a total of 21.00 from holding Bosera CMSK Industrial or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Bosera CMSK Industrial |
Shandong Sanyuan and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Bosera CMSK
The main advantage of trading using opposite Shandong Sanyuan and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.| Shandong Sanyuan vs. Beijing Enlight Media | Shandong Sanyuan vs. China Publishing Media | Shandong Sanyuan vs. Linewell Software Co | Shandong Sanyuan vs. Digiwin Software Co |
| Bosera CMSK vs. Shandong Sanyuan Biotechnology | Bosera CMSK vs. Jinhe Biotechnology Co | Bosera CMSK vs. Tongyu Communication | Bosera CMSK vs. Fujian Wanchen Biotechnology |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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