Correlation Between ZhongAn Online and BOS BETTER

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and BOS BETTER 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 ZhongAn Online and BOS BETTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and BOS BETTER ONLINE, you can compare the effects of market volatilities on ZhongAn Online and BOS BETTER 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 ZhongAn Online with a short position of BOS BETTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and BOS BETTER.

Diversification Opportunities for ZhongAn Online and BOS BETTER

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ZhongAn and BOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and BOS BETTER ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS BETTER ONLINE and ZhongAn Online 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 ZhongAn Online P are associated (or correlated) with BOS BETTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS BETTER ONLINE has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and BOS BETTER go up and down completely randomly.

Pair Corralation between ZhongAn Online and BOS BETTER

If you would invest  236.00  in BOS BETTER ONLINE on October 8, 2024 and sell it today you would earn a total of  0.00  from holding BOS BETTER ONLINE or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.33%
ValuesDaily Returns

ZhongAn Online P  vs.  BOS BETTER ONLINE

 Performance 
       Timeline  
ZhongAn Online P 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ZhongAn Online P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
BOS BETTER ONLINE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BOS BETTER ONLINE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BOS BETTER is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

ZhongAn Online and BOS BETTER Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ZhongAn Online and BOS BETTER

The main advantage of trading using opposite ZhongAn Online and BOS BETTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, BOS BETTER 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 BOS BETTER will offset losses from the drop in BOS BETTER's long position.
The idea behind ZhongAn Online P and BOS BETTER ONLINE 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.
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA