Correlation Between Beijing Sanyuan and Bosera CMSK
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Bosera CMSK Industrial, you can compare the effects of market volatilities on Beijing 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 Beijing Sanyuan with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Bosera CMSK.
Diversification Opportunities for Beijing Sanyuan and Bosera CMSK
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Bosera is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods 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 Beijing 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 Beijing Sanyuan Foods 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 Beijing Sanyuan i.e., Beijing Sanyuan and Bosera CMSK go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Bosera CMSK
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Bosera CMSK. In addition to that, Beijing Sanyuan is 1.88 times more volatile than Bosera CMSK Industrial. It trades about -0.23 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.41 per unit of volatility. If you would invest 205.00 in Bosera CMSK Industrial on October 30, 2024 and sell it today you would earn a total of 19.00 from holding Bosera CMSK Industrial or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Bosera CMSK Industrial |
Beijing Sanyuan and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Bosera CMSK
The main advantage of trading using opposite Beijing Sanyuan and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing 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.| Beijing Sanyuan vs. Shandong Rike Chemical | Beijing Sanyuan vs. Lander Sports Development | Beijing Sanyuan vs. Daoming OpticsChemical Co | Beijing Sanyuan vs. Xilong Chemical Co |
| Bosera CMSK vs. Gan Yuan Foods | Bosera CMSK vs. Namchow Food Group | Bosera CMSK vs. Guangdong Qunxing Toys | Bosera CMSK vs. Xiwang Foodstuffs Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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