Correlation Between Bus Online and China Publishing
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By analyzing existing cross correlation between Bus Online Co and China Publishing Media, you can compare the effects of market volatilities on Bus Online and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and China Publishing.
Diversification Opportunities for Bus Online and China Publishing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Bus Online i.e., Bus Online and China Publishing go up and down completely randomly.
Pair Corralation between Bus Online and China Publishing
Assuming the 90 days trading horizon Bus Online Co is expected to generate 1.51 times more return on investment than China Publishing. However, Bus Online is 1.51 times more volatile than China Publishing Media. It trades about -0.06 of its potential returns per unit of risk. China Publishing Media is currently generating about -0.16 per unit of risk. If you would invest 491.00 in Bus Online Co on September 26, 2024 and sell it today you would lose (31.00) from holding Bus Online Co or give up 6.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Bus Online Co vs. China Publishing Media
Performance |
Timeline |
Bus Online |
China Publishing Media |
Bus Online and China Publishing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bus Online and China Publishing
The main advantage of trading using opposite Bus Online and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.Bus Online vs. Zhejiang Yayi Metal | Bus Online vs. Ye Chiu Metal | Bus Online vs. Ningbo Tech Bank Co | Bus Online vs. Peoples Insurance of |
China Publishing vs. Wintao Communications Co | China Publishing vs. Northern United Publishing | China Publishing vs. Sichuan Jinshi Technology | China Publishing vs. Guangdong Shenglu Telecommunication |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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