Correlation Between Bus Online and Haima Automobile
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By analyzing existing cross correlation between Bus Online Co and Haima Automobile Group, you can compare the effects of market volatilities on Bus Online and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Haima Automobile.
Diversification Opportunities for Bus Online and Haima Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bus and Haima is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Bus Online i.e., Bus Online and Haima Automobile go up and down completely randomly.
Pair Corralation between Bus Online and Haima Automobile
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Bus Online Co is 1.12 times less risky than Haima Automobile. The stock trades about -0.01 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 494.00 in Haima Automobile Group on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Haima Automobile Group or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Haima Automobile Group
Performance |
| Timeline |
| Bus Online |
| Haima Automobile |
Bus Online and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Haima Automobile
The main advantage of trading using opposite Bus Online and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Bus Online vs. Haima Automobile Group | Bus Online vs. BTG Hotels Group | Bus Online vs. Dongfeng Automobile Co | Bus Online vs. Changchun Faway Automobile |
| Haima Automobile vs. Cambricon Technologies Corp | Haima Automobile vs. Loongson Technology Corp | Haima Automobile vs. Shenzhen Fortune Trend | Haima Automobile vs. Chongqing Road Bridge |
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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