Correlation Between Bus Online and Shantui Construction
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By analyzing existing cross correlation between Bus Online Co and Shantui Construction Machinery, you can compare the effects of market volatilities on Bus Online and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Shantui Construction.
Diversification Opportunities for Bus Online and Shantui Construction
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bus and Shantui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Bus Online i.e., Bus Online and Shantui Construction go up and down completely randomly.
Pair Corralation between Bus Online and Shantui Construction
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Shantui Construction. In addition to that, Bus Online is 1.14 times more volatile than Shantui Construction Machinery. It trades about 0.0 of its total potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.08 per unit of volatility. If you would invest 429.00 in Shantui Construction Machinery on September 3, 2024 and sell it today you would earn a total of 614.00 from holding Shantui Construction Machinery or generate 143.12% 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. Shantui Construction Machinery
Performance |
| Timeline |
| Bus Online |
| Shantui Construction |
Bus Online and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Shantui Construction
The main advantage of trading using opposite Bus Online and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction'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 |
| Shantui Construction vs. Cultural Investment Holdings | Shantui Construction vs. Gome Telecom Equipment | Shantui Construction vs. Bus Online Co | Shantui Construction vs. Holitech Technology Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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