Correlation Between Hunan Investment and Bus Online
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By analyzing existing cross correlation between Hunan Investment Group and Bus Online Co, you can compare the effects of market volatilities on Hunan Investment and Bus Online 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 Hunan Investment with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Bus Online.
Diversification Opportunities for Hunan Investment and Bus Online
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Bus is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Hunan Investment i.e., Hunan Investment and Bus Online go up and down completely randomly.
Pair Corralation between Hunan Investment and Bus Online
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 0.54 times more return on investment than Bus Online. However, Hunan Investment Group is 1.87 times less risky than Bus Online. It trades about -0.08 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.08 per unit of risk. If you would invest 569.00 in Hunan Investment Group on October 30, 2024 and sell it today you would lose (44.00) from holding Hunan Investment Group or give up 7.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Bus Online Co
Performance |
| Timeline |
| Hunan Investment |
| Bus Online |
Hunan Investment and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Bus Online
The main advantage of trading using opposite Hunan Investment and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Hunan Investment vs. Zhongshan Public Utilities | Hunan Investment vs. Xiangyang Automobile Bearing | Hunan Investment vs. Advanced Technology Materials | Hunan Investment vs. Nanya New Material |
| Bus Online vs. Guangdong Liantai Environmental | Bus Online vs. Sinosteel Engineering and | Bus Online vs. Guangzhou Dongfang Hotel | Bus Online vs. Wuxi Xuelang Environmental |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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