Correlation Between China Securities and Bus Online
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By analyzing existing cross correlation between China Securities 800 and Bus Online Co, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Bus Online.
Diversification Opportunities for China Securities and Bus Online
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Bus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Bus Online go up and down completely randomly.
Pair Corralation between China Securities and Bus Online
Assuming the 90 days trading horizon China Securities is expected to generate 10.13 times less return on investment than Bus Online. But when comparing it to its historical volatility, China Securities 800 is 1.61 times less risky than Bus Online. It trades about 0.01 of its potential returns per unit of risk. Bus Online Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 485.00 in Bus Online Co on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Bus Online Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Bus Online Co
Performance |
| Timeline |
China Securities and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Bus Online Co
Pair trading matchups for Bus Online
Pair Trading with China Securities and Bus Online
The main advantage of trading using opposite China Securities and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Bus Online vs. Industrial and Commercial | Bus Online vs. Kweichow Moutai Co | Bus Online vs. Agricultural Bank of | Bus Online vs. China Mobile Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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