Correlation Between Hubei Geoway and Bosera CMSK
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By analyzing existing cross correlation between Hubei Geoway Investment and Bosera CMSK Industrial, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Bosera CMSK.
Diversification Opportunities for Hubei Geoway and Bosera CMSK
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hubei and Bosera is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment 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 Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and Bosera CMSK go up and down completely randomly.
Pair Corralation between Hubei Geoway and Bosera CMSK
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Bosera CMSK. In addition to that, Hubei Geoway is 3.13 times more volatile than Bosera CMSK Industrial. It trades about -0.09 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.45 per unit of volatility. If you would invest 206.00 in Bosera CMSK Industrial on November 4, 2024 and sell it today you would earn a total of 18.00 from holding Bosera CMSK Industrial or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Hubei Geoway Investment |
| Bosera CMSK Industrial |
Hubei Geoway and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Bosera CMSK
The main advantage of trading using opposite Hubei Geoway and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Lecron Energy Saving | Hubei Geoway vs. Unisplendour Corp | Hubei Geoway vs. Hunan Mendale Hometextile | Hubei Geoway vs. Industrial Bank Co |
| Bosera CMSK vs. Beingmate Baby Child | Bosera CMSK vs. Shenzhen Zqgame | Bosera CMSK vs. Yankershop Food Co | Bosera CMSK vs. Suzhou Weizhixiang Food |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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