Correlation Between Baozun and 126650DF4
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By analyzing existing cross correlation between Baozun Inc and CVS HEALTH P, you can compare the effects of market volatilities on Baozun and 126650DF4 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 Baozun with a short position of 126650DF4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baozun and 126650DF4.
Diversification Opportunities for Baozun and 126650DF4
Pay attention - limited upside
The 3 months correlation between Baozun and 126650DF4 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baozun Inc and CVS HEALTH P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS HEALTH P and Baozun 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 Baozun Inc are associated (or correlated) with 126650DF4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS HEALTH P has no effect on the direction of Baozun i.e., Baozun and 126650DF4 go up and down completely randomly.
Pair Corralation between Baozun and 126650DF4
Given the investment horizon of 90 days Baozun Inc is expected to under-perform the 126650DF4. In addition to that, Baozun is 12.14 times more volatile than CVS HEALTH P. It trades about -0.01 of its total potential returns per unit of risk. CVS HEALTH P is currently generating about 0.0 per unit of volatility. If you would invest 9,448 in CVS HEALTH P on September 3, 2024 and sell it today you would earn a total of 16.00 from holding CVS HEALTH P or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Baozun Inc vs. CVS HEALTH P
Performance |
| Timeline |
| Baozun Inc |
| CVS HEALTH P |
Baozun and 126650DF4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baozun and 126650DF4
The main advantage of trading using opposite Baozun and 126650DF4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baozun position performs unexpectedly, 126650DF4 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 126650DF4 will offset losses from the drop in 126650DF4's long position.The idea behind Baozun Inc and CVS HEALTH P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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