Correlation Between Dow Jones and Bosera CMSK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Bosera CMSK Industrial, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Bosera CMSK.
Diversification Opportunities for Dow Jones and Bosera CMSK
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and Bosera is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and Bosera CMSK go up and down completely randomly.
Pair Corralation between Dow Jones and Bosera CMSK
Assuming the 90 days trading horizon Dow Jones is expected to generate 3.6 times less return on investment than Bosera CMSK. But when comparing it to its historical volatility, Dow Jones Industrial is 1.79 times less risky than Bosera CMSK. It trades about 0.07 of its potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 139.00 in Bosera CMSK Industrial on October 18, 2024 and sell it today you would earn a total of 78.00 from holding Bosera CMSK Industrial or generate 56.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.58% |
| Values | Daily Returns |
Dow Jones Industrial vs. Bosera CMSK Industrial
Performance |
| Timeline |
Dow Jones and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Bosera CMSK Industrial
Pair trading matchups for Bosera CMSK
Pair Trading with Dow Jones and Bosera CMSK
The main advantage of trading using opposite Dow Jones and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Neogen | Dow Jones vs. Alta Equipment Group | Dow Jones vs. Merit Medical Systems | Dow Jones vs. Summit Therapeutics PLC |
| Bosera CMSK vs. Chongqing Changan Automobile | Bosera CMSK vs. Songz Automobile Air | Bosera CMSK vs. China World Trade | Bosera CMSK vs. Shanghai Yanpu Metal |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stocks Directory Find actively traded stocks across global markets |