Correlation Between Bus Online and Sinosteel Engineering
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By analyzing existing cross correlation between Bus Online Co and Sinosteel Engineering and, you can compare the effects of market volatilities on Bus Online and Sinosteel Engineering 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 Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Sinosteel Engineering.
Diversification Opportunities for Bus Online and Sinosteel Engineering
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Sinosteel is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and 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 Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Bus Online i.e., Bus Online and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Bus Online and Sinosteel Engineering
Assuming the 90 days trading horizon Bus Online is expected to generate 1.97 times less return on investment than Sinosteel Engineering. In addition to that, Bus Online is 1.08 times more volatile than Sinosteel Engineering and. It trades about 0.09 of its total potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.2 per unit of volatility. If you would invest 649.00 in Sinosteel Engineering and on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Sinosteel Engineering and or generate 9.4% 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. Sinosteel Engineering and
Performance |
| Timeline |
| Bus Online |
| Sinosteel Engineering and |
Bus Online and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Sinosteel Engineering
The main advantage of trading using opposite Bus Online and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering'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 |
| Sinosteel Engineering vs. Industrial Securities Co | Sinosteel Engineering vs. Western Metal Materials | Sinosteel Engineering vs. Shandong Huifa Foodstuff | Sinosteel Engineering vs. Sichuan Yahua Industrial |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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