Correlation Between Guotai Epoint and Bosera CMSK
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By analyzing existing cross correlation between Guotai Epoint Software and Bosera CMSK Industrial, you can compare the effects of market volatilities on Guotai Epoint 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 Guotai Epoint with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Bosera CMSK.
Diversification Opportunities for Guotai Epoint and Bosera CMSK
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guotai and Bosera is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software 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 Guotai Epoint 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 Guotai Epoint Software 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 Guotai Epoint i.e., Guotai Epoint and Bosera CMSK go up and down completely randomly.
Pair Corralation between Guotai Epoint and Bosera CMSK
Assuming the 90 days trading horizon Guotai Epoint Software is expected to under-perform the Bosera CMSK. In addition to that, Guotai Epoint is 2.57 times more volatile than Bosera CMSK Industrial. It trades about -0.05 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.38 per unit of volatility. If you would invest 194.00 in Bosera CMSK Industrial on October 30, 2024 and sell it today you would earn a total of 30.00 from holding Bosera CMSK Industrial or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Guotai Epoint Software |
| Bosera CMSK Industrial |
Guotai Epoint and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Bosera CMSK
The main advantage of trading using opposite Guotai Epoint and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint 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.| Guotai Epoint vs. Uroica Mining Safety | Guotai Epoint vs. Rising Nonferrous Metals | Guotai Epoint vs. Xiandai Investment Co | Guotai Epoint vs. Jiangsu Yueda Investment |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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