Correlation Between Bus Online and Huatian Hotel
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By analyzing existing cross correlation between Bus Online Co and Huatian Hotel Group, you can compare the effects of market volatilities on Bus Online and Huatian Hotel 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 Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Huatian Hotel.
Diversification Opportunities for Bus Online and Huatian Hotel
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Huatian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group 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 Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Bus Online i.e., Bus Online and Huatian Hotel go up and down completely randomly.
Pair Corralation between Bus Online and Huatian Hotel
Assuming the 90 days trading horizon Bus Online Co is expected to generate 0.73 times more return on investment than Huatian Hotel. However, Bus Online Co is 1.37 times less risky than Huatian Hotel. It trades about 0.14 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about 0.02 per unit of risk. If you would invest 475.00 in Bus Online Co on September 3, 2024 and sell it today you would earn a total of 31.00 from holding Bus Online Co or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Huatian Hotel Group
Performance |
| Timeline |
| Bus Online |
| Huatian Hotel Group |
Bus Online and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Huatian Hotel
The main advantage of trading using opposite Bus Online and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Bus Online vs. Anhui Transport Consulting | Bus Online vs. Sino Platinum Metals Co | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. China Aluminum International |
| Huatian Hotel vs. PetroChina Co Ltd | Huatian Hotel vs. China Mobile Limited | Huatian Hotel vs. Industrial and Commercial | Huatian Hotel vs. China Life Insurance |
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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