Correlation Between Ford and Bosera CMSK
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By analyzing existing cross correlation between Ford Motor and Bosera CMSK Industrial, you can compare the effects of market volatilities on Ford 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 Ford with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Bosera CMSK.
Diversification Opportunities for Ford and Bosera CMSK
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Bosera is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor 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 Ford 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 Ford Motor 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 Ford i.e., Ford and Bosera CMSK go up and down completely randomly.
Pair Corralation between Ford and Bosera CMSK
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.79 times more return on investment than Bosera CMSK. However, Ford is 1.79 times more volatile than Bosera CMSK Industrial. It trades about 0.0 of its potential returns per unit of risk. Bosera CMSK Industrial is currently generating about -0.03 per unit of risk. If you would invest 1,141 in Ford Motor on October 31, 2024 and sell it today you would lose (103.00) from holding Ford Motor or give up 9.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.57% |
| Values | Daily Returns |
Ford Motor vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Ford Motor |
| Bosera CMSK Industrial |
Ford and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Bosera CMSK
The main advantage of trading using opposite Ford and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.The idea behind Ford Motor and Bosera CMSK Industrial 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.| Bosera CMSK vs. China World Trade | Bosera CMSK vs. Shuhua Sports Co | Bosera CMSK vs. Jiangsu Jinling Sports | Bosera CMSK vs. XiAn Dagang Road |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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