Correlation Between Baozun and 40434LAN5
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By analyzing existing cross correlation between Baozun Inc and HPQ 55 15 JAN 33, you can compare the effects of market volatilities on Baozun and 40434LAN5 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 40434LAN5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baozun and 40434LAN5.
Diversification Opportunities for Baozun and 40434LAN5
Good diversification
The 3 months correlation between Baozun and 40434LAN5 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Baozun Inc and HPQ 55 15 JAN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HPQ 55 15 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 40434LAN5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HPQ 55 15 has no effect on the direction of Baozun i.e., Baozun and 40434LAN5 go up and down completely randomly.
Pair Corralation between Baozun and 40434LAN5
Given the investment horizon of 90 days Baozun Inc is expected to under-perform the 40434LAN5. In addition to that, Baozun is 4.97 times more volatile than HPQ 55 15 JAN 33. It trades about -0.01 of its total potential returns per unit of risk. HPQ 55 15 JAN 33 is currently generating about 0.0 per unit of volatility. If you would invest 9,778 in HPQ 55 15 JAN 33 on September 3, 2024 and sell it today you would lose (178.00) from holding HPQ 55 15 JAN 33 or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.96% |
| Values | Daily Returns |
Baozun Inc vs. HPQ 55 15 JAN 33
Performance |
| Timeline |
| Baozun Inc |
| HPQ 55 15 |
Baozun and 40434LAN5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baozun and 40434LAN5
The main advantage of trading using opposite Baozun and 40434LAN5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baozun position performs unexpectedly, 40434LAN5 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 40434LAN5 will offset losses from the drop in 40434LAN5's long position.The idea behind Baozun Inc and HPQ 55 15 JAN 33 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.| 40434LAN5 vs. Summit Materials | 40434LAN5 vs. Titan Machinery | 40434LAN5 vs. Baozun Inc | 40434LAN5 vs. NioCorp Developments Ltd |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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