Correlation Between Everus Construction and Baozun
Can any of the company-specific risk be diversified away by investing in both Everus Construction and Baozun at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Everus Construction and Baozun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everus Construction Group and Baozun Inc, you can compare the effects of market volatilities on Everus Construction and Baozun 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 Everus Construction with a short position of Baozun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everus Construction and Baozun.
Diversification Opportunities for Everus Construction and Baozun
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Everus and Baozun is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Everus Construction Group and Baozun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baozun Inc and Everus Construction 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 Everus Construction Group are associated (or correlated) with Baozun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baozun Inc has no effect on the direction of Everus Construction i.e., Everus Construction and Baozun go up and down completely randomly.
Pair Corralation between Everus Construction and Baozun
Considering the 90-day investment horizon Everus Construction Group is expected to generate 0.97 times more return on investment than Baozun. However, Everus Construction Group is 1.03 times less risky than Baozun. It trades about 0.24 of its potential returns per unit of risk. Baozun Inc is currently generating about -0.12 per unit of risk. If you would invest 5,370 in Everus Construction Group on September 4, 2024 and sell it today you would earn a total of 1,177 from holding Everus Construction Group or generate 21.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everus Construction Group vs. Baozun Inc
Performance |
| Timeline |
| Everus Construction |
| Baozun Inc |
Everus Construction and Baozun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everus Construction and Baozun
The main advantage of trading using opposite Everus Construction and Baozun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everus Construction position performs unexpectedly, Baozun 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 Baozun will offset losses from the drop in Baozun's long position.| Everus Construction vs. Ituran Location and | Everus Construction vs. WiMi Hologram Cloud | Everus Construction vs. Barings BDC | Everus Construction vs. LithiumBank Resources Corp |
| Baozun vs. PDD Holdings | Baozun vs. JD Inc Adr | Baozun vs. Global E Online | Baozun vs. Vipshop Holdings Limited |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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