Correlation Between H+M HEN+MAUUNSPADR and Bosideng International
Can any of the company-specific risk be diversified away by investing in both H+M HEN+MAUUNSPADR and Bosideng International 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 H+M HEN+MAUUNSPADR and Bosideng International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM HENMAUUNSPADR 15 and Bosideng International Holdings, you can compare the effects of market volatilities on H+M HEN+MAUUNSPADR and Bosideng International 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 H+M HEN+MAUUNSPADR with a short position of Bosideng International. Check out your portfolio center. Please also check ongoing floating volatility patterns of H+M HEN+MAUUNSPADR and Bosideng International.
Diversification Opportunities for H+M HEN+MAUUNSPADR and Bosideng International
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between H+M and Bosideng is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding HM HENMAUUNSPADR 15 and Bosideng International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosideng International and H+M HEN+MAUUNSPADR 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 HM HENMAUUNSPADR 15 are associated (or correlated) with Bosideng International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosideng International has no effect on the direction of H+M HEN+MAUUNSPADR i.e., H+M HEN+MAUUNSPADR and Bosideng International go up and down completely randomly.
Pair Corralation between H+M HEN+MAUUNSPADR and Bosideng International
Assuming the 90 days trading horizon HM HENMAUUNSPADR 15 is expected to generate 0.47 times more return on investment than Bosideng International. However, HM HENMAUUNSPADR 15 is 2.11 times less risky than Bosideng International. It trades about -0.18 of its potential returns per unit of risk. Bosideng International Holdings is currently generating about -0.13 per unit of risk. If you would invest 293.00 in HM HENMAUUNSPADR 15 on August 28, 2024 and sell it today you would lose (25.00) from holding HM HENMAUUNSPADR 15 or give up 8.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HM HENMAUUNSPADR 15 vs. Bosideng International Holding
Performance |
| Timeline |
| H+M HEN+MAUUNSPADR |
| Bosideng International |
H+M HEN+MAUUNSPADR and Bosideng International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H+M HEN+MAUUNSPADR and Bosideng International
The main advantage of trading using opposite H+M HEN+MAUUNSPADR and Bosideng International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H+M HEN+MAUUNSPADR position performs unexpectedly, Bosideng International 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 Bosideng International will offset losses from the drop in Bosideng International's long position.| H+M HEN+MAUUNSPADR vs. Moncler SpA | H+M HEN+MAUUNSPADR vs. Capri Holdings Limited | H+M HEN+MAUUNSPADR vs. Gildan Activewear |
| Bosideng International vs. Plastic Omnium | Bosideng International vs. NEWELL RUBBERMAID | Bosideng International vs. GOODYEAR T RUBBER | Bosideng International vs. GEELY AUTOMOBILE |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |