Correlation Between Bosideng International and Blackberry

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Can any of the company-specific risk be diversified away by investing in both Bosideng International and Blackberry 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 Bosideng International and Blackberry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosideng International Holdings and Blackberry, you can compare the effects of market volatilities on Bosideng International and Blackberry 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 Bosideng International with a short position of Blackberry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosideng International and Blackberry.

Diversification Opportunities for Bosideng International and Blackberry

-0.92
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Bosideng and Blackberry is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bosideng International Holding and Blackberry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackberry and Bosideng International 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 Bosideng International Holdings are associated (or correlated) with Blackberry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackberry has no effect on the direction of Bosideng International i.e., Bosideng International and Blackberry go up and down completely randomly.

Pair Corralation between Bosideng International and Blackberry

Assuming the 90 days horizon Bosideng International Holdings is expected to generate 2.09 times more return on investment than Blackberry. However, Bosideng International is 2.09 times more volatile than Blackberry. It trades about 0.04 of its potential returns per unit of risk. Blackberry is currently generating about -0.06 per unit of risk. If you would invest  2,265  in Bosideng International Holdings on August 28, 2022 and sell it today you would earn a total of  339.00  from holding Bosideng International Holdings or generate 14.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Bosideng International Holding  vs.  Blackberry

 Performance (%) 
       Timeline  
Bosideng International 
Bosideng Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bosideng International Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Bosideng International may actually be approaching a critical reversion point that can send shares even higher in December 2022.

Bosideng Price Channel

Blackberry 
Blackberry Performance
0 of 100
Over the last 90 days Blackberry has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Blackberry Price Channel

Bosideng International and Blackberry Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bosideng International and Blackberry

The main advantage of trading using opposite Bosideng International and Blackberry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosideng International position performs unexpectedly, Blackberry 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 Blackberry will offset losses from the drop in Blackberry's long position.
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The idea behind Bosideng International Holdings and Blackberry 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.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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