Correlation Between Bus Online and Hengli Industrial
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By analyzing existing cross correlation between Bus Online Co and Hengli Industrial Development, you can compare the effects of market volatilities on Bus Online and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Hengli Industrial.
Diversification Opportunities for Bus Online and Hengli Industrial
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and Hengli is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Bus Online i.e., Bus Online and Hengli Industrial go up and down completely randomly.
Pair Corralation between Bus Online and Hengli Industrial
Assuming the 90 days trading horizon Bus Online Co is expected to generate 0.56 times more return on investment than Hengli Industrial. However, Bus Online Co is 1.78 times less risky than Hengli Industrial. It trades about 0.08 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.02 per unit of risk. If you would invest 506.00 in Bus Online Co on September 12, 2024 and sell it today you would earn a total of 17.00 from holding Bus Online Co or generate 3.36% 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. Hengli Industrial Development
Performance |
| Timeline |
| Bus Online |
| Hengli Industrial |
Bus Online and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Hengli Industrial
The main advantage of trading using opposite Bus Online and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Bus Online vs. Gansu Jiu Steel | Bus Online vs. Shandong Mining Machinery | Bus Online vs. Aba Chemicals Corp | Bus Online vs. BlueFocus Communication Group |
| Hengli Industrial vs. Lutian Machinery Co | Hengli Industrial vs. PetroChina Co Ltd | Hengli Industrial vs. Bank of China | Hengli Industrial vs. Gansu Jiu Steel |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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