Correlation Between Bus Online and Dook Media

Can any of the company-specific risk be diversified away by investing in both Bus Online and Dook Media 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 Bus Online and Dook Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bus Online Co and Dook Media Group, you can compare the effects of market volatilities on Bus Online and Dook Media 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 Bus Online with a short position of Dook Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Dook Media.

Diversification Opportunities for Bus Online and Dook Media

0.73

Correlation Coefficient

Bus Online  Dook Media

Poor diversification

The 3 months correlation between Bus and Dook is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Dook Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dook Media Group and Bus 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 Bus Online Co are associated (or correlated) with Dook Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dook Media Group has no effect on the direction of Bus Online i.e., Bus Online and Dook Media go up and down completely randomly.

Pair Corralation between Bus Online and Dook Media

Assuming the 90 days trading horizon Bus Online Co is expected to generate 1.22 times more return on investment than Dook Media. However, Bus Online is 1.22 times more volatile than Dook Media Group. It trades about 0.05 of its potential returns per unit of risk. Dook Media Group is currently generating about -0.09 per unit of risk. If you would invest  460.00  in Bus Online Co on December 24, 2024 and sell it today you would earn a total of  26.00  from holding Bus Online Co or generate 5.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bus Online Co  vs.  Dook Media Group

Bus Online

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bus Online Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bus Online may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Dook Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dook Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bus Online and Dook Media

The main advantage of trading using opposite Bus Online and Dook Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Dook Media 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 Dook Media will offset losses from the drop in Dook Media's long position.

The idea behind Bus Online Co and Dook Media Group 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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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.