Correlation Between Baozun and 89832QAC3
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By analyzing existing cross correlation between Baozun Inc and TFC 5125, you can compare the effects of market volatilities on Baozun and 89832QAC3 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 89832QAC3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baozun and 89832QAC3.
Diversification Opportunities for Baozun and 89832QAC3
Modest diversification
The 3 months correlation between Baozun and 89832QAC3 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Baozun Inc and TFC 5125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 89832QAC3 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 89832QAC3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 89832QAC3 has no effect on the direction of Baozun i.e., Baozun and 89832QAC3 go up and down completely randomly.
Pair Corralation between Baozun and 89832QAC3
Given the investment horizon of 90 days Baozun Inc is expected to under-perform the 89832QAC3. In addition to that, Baozun is 5.62 times more volatile than TFC 5125. It trades about -0.06 of its total potential returns per unit of risk. TFC 5125 is currently generating about -0.07 per unit of volatility. If you would invest 9,723 in TFC 5125 on September 4, 2024 and sell it today you would lose (108.00) from holding TFC 5125 or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Baozun Inc vs. TFC 5125
Performance |
| Timeline |
| Baozun Inc |
| 89832QAC3 |
Baozun and 89832QAC3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baozun and 89832QAC3
The main advantage of trading using opposite Baozun and 89832QAC3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baozun position performs unexpectedly, 89832QAC3 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 89832QAC3 will offset losses from the drop in 89832QAC3's long position.| Baozun vs. PDD Holdings | Baozun vs. JD Inc Adr | Baozun vs. Global E Online | Baozun vs. Vipshop Holdings Limited |
| 89832QAC3 vs. Alta Equipment Group | 89832QAC3 vs. FTAI Aviation Ltd | 89832QAC3 vs. Avis Budget Group | 89832QAC3 vs. China Aircraft Leasing |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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