Correlation Between Zhangjiagang Elegant and Bosera CMSK
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By analyzing existing cross correlation between Zhangjiagang Elegant Home and Bosera CMSK Industrial, you can compare the effects of market volatilities on Zhangjiagang Elegant 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 Zhangjiagang Elegant with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Elegant and Bosera CMSK.
Diversification Opportunities for Zhangjiagang Elegant and Bosera CMSK
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhangjiagang and Bosera is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Elegant Home 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 Zhangjiagang Elegant 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 Zhangjiagang Elegant Home 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 Zhangjiagang Elegant i.e., Zhangjiagang Elegant and Bosera CMSK go up and down completely randomly.
Pair Corralation between Zhangjiagang Elegant and Bosera CMSK
Assuming the 90 days trading horizon Zhangjiagang Elegant Home is expected to under-perform the Bosera CMSK. In addition to that, Zhangjiagang Elegant is 3.74 times more volatile than Bosera CMSK Industrial. It trades about -0.2 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.39 per unit of volatility. If you would invest 196.00 in Bosera CMSK Industrial on October 12, 2024 and sell it today you would earn a total of 16.00 from holding Bosera CMSK Industrial or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Elegant Home vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Zhangjiagang Elegant Home |
| Bosera CMSK Industrial |
Zhangjiagang Elegant and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Elegant and Bosera CMSK
The main advantage of trading using opposite Zhangjiagang Elegant and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Elegant 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.| Zhangjiagang Elegant vs. Bosera CMSK Industrial | Zhangjiagang Elegant vs. Qingdao Choho Industrial | Zhangjiagang Elegant vs. Allgens Medical Technology | Zhangjiagang Elegant vs. Qingdao Haier Biomedical |
| Bosera CMSK vs. Rising Nonferrous Metals | Bosera CMSK vs. XinJiang GuoTong Pipeline | Bosera CMSK vs. COL Digital Publishing | Bosera CMSK vs. China Minmetals Rare |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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