Correlation Between Bus Online and Beijing New
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By analyzing existing cross correlation between Bus Online Co and Beijing New Building, you can compare the effects of market volatilities on Bus Online and Beijing New 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 Beijing New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Beijing New.
Diversification Opportunities for Bus Online and Beijing New
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and Beijing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building 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 Beijing New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of Bus Online i.e., Bus Online and Beijing New go up and down completely randomly.
Pair Corralation between Bus Online and Beijing New
Assuming the 90 days trading horizon Bus Online is expected to generate 109.57 times less return on investment than Beijing New. In addition to that, Bus Online is 1.51 times more volatile than Beijing New Building. It trades about 0.0 of its total potential returns per unit of risk. Beijing New Building is currently generating about 0.04 per unit of volatility. If you would invest 2,362 in Beijing New Building on September 12, 2024 and sell it today you would earn a total of 501.00 from holding Beijing New Building or generate 21.21% 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. Beijing New Building
Performance |
| Timeline |
| Bus Online |
| Beijing New Building |
Bus Online and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Beijing New
The main advantage of trading using opposite Bus Online and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Beijing New 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 Beijing New will offset losses from the drop in Beijing New'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 |
| Beijing New vs. Huaxia Fund Management | Beijing New vs. Shaanxi Energy Investment | Beijing New vs. Nuode Investment Co | Beijing New vs. Hubei Geoway Investment |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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