Correlation Between Weichai Heavy and Bus Online
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By analyzing existing cross correlation between Weichai Heavy Machinery and Bus Online Co, you can compare the effects of market volatilities on Weichai Heavy 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 Weichai Heavy with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and Bus Online.
Diversification Opportunities for Weichai Heavy and Bus Online
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weichai and Bus is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Weichai Heavy 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 Weichai Heavy Machinery 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 Weichai Heavy i.e., Weichai Heavy and Bus Online go up and down completely randomly.
Pair Corralation between Weichai Heavy and Bus Online
Assuming the 90 days trading horizon Weichai Heavy Machinery is expected to generate 0.94 times more return on investment than Bus Online. However, Weichai Heavy Machinery is 1.06 times less risky than Bus Online. It trades about 0.06 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.03 per unit of risk. If you would invest 973.00 in Weichai Heavy Machinery on October 12, 2024 and sell it today you would earn a total of 887.00 from holding Weichai Heavy Machinery or generate 91.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weichai Heavy Machinery vs. Bus Online Co
Performance |
| Timeline |
| Weichai Heavy Machinery |
| Bus Online |
Weichai Heavy and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weichai Heavy and Bus Online
The main advantage of trading using opposite Weichai Heavy and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy 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.| Weichai Heavy vs. Leyard Optoelectronic | Weichai Heavy vs. Ningxia Younglight Chemicals | Weichai Heavy vs. Longjian Road Bridge | Weichai Heavy vs. Miracll Chemicals Co |
| Bus Online vs. GRIPM Advanced Materials | Bus Online vs. China Building Material | Bus Online vs. Zhejiang Yinlun Machinery | Bus Online vs. Weichai Heavy Machinery |
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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