Correlation Between Industrial and Bosera CMSK
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By analyzing existing cross correlation between Industrial and Commercial and Bosera CMSK Industrial, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Bosera CMSK.
Diversification Opportunities for Industrial and Bosera CMSK
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Bosera is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Bosera CMSK go up and down completely randomly.
Pair Corralation between Industrial and Bosera CMSK
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 1.6 times more return on investment than Bosera CMSK. However, Industrial is 1.6 times more volatile than Bosera CMSK Industrial. It trades about 0.43 of its potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.34 per unit of risk. If you would invest 619.00 in Industrial and Commercial on September 29, 2024 and sell it today you would earn a total of 73.00 from holding Industrial and Commercial or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Industrial and Commercial |
| Bosera CMSK Industrial |
Industrial and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Bosera CMSK
The main advantage of trading using opposite Industrial and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. State Grid InformationCommunication | Industrial vs. Shanghai Ziyan Foods | Industrial vs. Anji Foodstuff Co | Industrial vs. Quectel Wireless Solutions |
| Bosera CMSK vs. Industrial and Commercial | Bosera CMSK vs. China Construction Bank | Bosera CMSK vs. Agricultural Bank of | Bosera CMSK vs. Bank of China |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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