Correlation Between XRP and Bosera CMSK
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By analyzing existing cross correlation between XRP and Bosera CMSK Industrial, you can compare the effects of market volatilities on XRP 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 XRP with a short position of Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of XRP and Bosera CMSK.
Diversification Opportunities for XRP and Bosera CMSK
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XRP and Bosera is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding XRP 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 XRP 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 XRP 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 XRP i.e., XRP and Bosera CMSK go up and down completely randomly.
Pair Corralation between XRP and Bosera CMSK
Assuming the 90 days trading horizon XRP is expected to generate 4.6 times more return on investment than Bosera CMSK. However, XRP is 4.6 times more volatile than Bosera CMSK Industrial. It trades about 0.2 of its potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.15 per unit of risk. If you would invest 54.00 in XRP on October 18, 2024 and sell it today you would earn a total of 256.00 from holding XRP or generate 474.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 71.85% |
| Values | Daily Returns |
XRP vs. Bosera CMSK Industrial
Performance |
| Timeline |
| XRP |
| Bosera CMSK Industrial |
XRP and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XRP and Bosera CMSK
The main advantage of trading using opposite XRP and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP 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 XRP 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. 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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