Correlation Between Titan Machinery and Baozun
Can any of the company-specific risk be diversified away by investing in both Titan Machinery 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 Titan Machinery and Baozun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Machinery and Baozun Inc, you can compare the effects of market volatilities on Titan Machinery 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 Titan Machinery with a short position of Baozun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Machinery and Baozun.
Diversification Opportunities for Titan Machinery and Baozun
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Titan and Baozun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Titan Machinery and Baozun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baozun Inc and Titan Machinery 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 Titan Machinery 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 Titan Machinery i.e., Titan Machinery and Baozun go up and down completely randomly.
Pair Corralation between Titan Machinery and Baozun
Given the investment horizon of 90 days Titan Machinery is expected to under-perform the Baozun. But the stock apears to be less risky and, when comparing its historical volatility, Titan Machinery is 1.46 times less risky than Baozun. The stock trades about -0.05 of its potential returns per unit of risk. The Baozun Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 550.00 in Baozun Inc on September 4, 2024 and sell it today you would lose (273.00) from holding Baozun Inc or give up 49.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan Machinery vs. Baozun Inc
Performance |
| Timeline |
| Titan Machinery |
| Baozun Inc |
Titan Machinery and Baozun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan Machinery and Baozun
The main advantage of trading using opposite Titan Machinery and Baozun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Machinery 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.| Titan Machinery vs. Global Industrial Co | Titan Machinery vs. Ferguson Plc | Titan Machinery vs. MSC Industrial Direct |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |