Correlation Between Bus Online and Zangge Holding
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By analyzing existing cross correlation between Bus Online Co and Zangge Holding Co, you can compare the effects of market volatilities on Bus Online and Zangge Holding 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 Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Zangge Holding.
Diversification Opportunities for Bus Online and Zangge Holding
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and Zangge is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding 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 Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Bus Online i.e., Bus Online and Zangge Holding go up and down completely randomly.
Pair Corralation between Bus Online and Zangge Holding
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Zangge Holding. In addition to that, Bus Online is 1.6 times more volatile than Zangge Holding Co. It trades about -0.02 of its total potential returns per unit of risk. Zangge Holding Co is currently generating about 0.03 per unit of volatility. If you would invest 2,335 in Zangge Holding Co on September 26, 2024 and sell it today you would earn a total of 440.00 from holding Zangge Holding Co or generate 18.84% 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. Zangge Holding Co
Performance |
| Timeline |
| Bus Online |
| Zangge Holding |
Bus Online and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Zangge Holding
The main advantage of trading using opposite Bus Online and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding'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 |
| Zangge Holding vs. Guangdong Shenglu Telecommunication | Zangge Holding vs. Gan Yuan Foods | Zangge Holding vs. Qingdao Foods Co | Zangge Holding vs. Fiberhome Telecommunication Technologies |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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