Correlation Between Bus Online and Hunan Investment
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By analyzing existing cross correlation between Bus Online Co and Hunan Investment Group, you can compare the effects of market volatilities on Bus Online and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Hunan Investment.
Diversification Opportunities for Bus Online and Hunan Investment
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Hunan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Bus Online i.e., Bus Online and Hunan Investment go up and down completely randomly.
Pair Corralation between Bus Online and Hunan Investment
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Hunan Investment. In addition to that, Bus Online is 1.27 times more volatile than Hunan Investment Group. It trades about -0.01 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.02 per unit of volatility. If you would invest 549.00 in Hunan Investment Group on September 2, 2024 and sell it today you would earn a total of 20.00 from holding Hunan Investment Group or generate 3.64% 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. Hunan Investment Group
Performance |
| Timeline |
| Bus Online |
| Hunan Investment |
Bus Online and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Hunan Investment
The main advantage of trading using opposite Bus Online and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Bus Online vs. Industrial and Commercial | Bus Online vs. Kweichow Moutai Co | Bus Online vs. Agricultural Bank of | Bus Online vs. China Mobile Limited |
| Hunan Investment vs. Unisplendour Corp | Hunan Investment vs. Longjian Road Bridge | Hunan Investment vs. Xinjiang Beixin RoadBridge | Hunan Investment vs. Shandong Hi Speed RoadBridge |
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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