Correlation Between Bus Online and Shanxi Xishan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bus Online Co and Shanxi Xishan Coal, you can compare the effects of market volatilities on Bus Online and Shanxi Xishan 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 Shanxi Xishan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Shanxi Xishan.
Diversification Opportunities for Bus Online and Shanxi Xishan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and Shanxi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Shanxi Xishan Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Xishan Coal 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 Shanxi Xishan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Xishan Coal has no effect on the direction of Bus Online i.e., Bus Online and Shanxi Xishan go up and down completely randomly.
Pair Corralation between Bus Online and Shanxi Xishan
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Shanxi Xishan. In addition to that, Bus Online is 1.76 times more volatile than Shanxi Xishan Coal. It trades about -0.02 of its total potential returns per unit of risk. Shanxi Xishan Coal is currently generating about -0.01 per unit of volatility. If you would invest 914.00 in Shanxi Xishan Coal on August 29, 2024 and sell it today you would lose (95.00) from holding Shanxi Xishan Coal or give up 10.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Shanxi Xishan Coal
Performance |
| Timeline |
| Bus Online |
| Shanxi Xishan Coal |
Bus Online and Shanxi Xishan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Shanxi Xishan
The main advantage of trading using opposite Bus Online and Shanxi Xishan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Shanxi Xishan 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 Shanxi Xishan will offset losses from the drop in Shanxi Xishan's long position.| Bus Online vs. Shenzhen MYS Environmental | Bus Online vs. AVIC Fund Management | Bus Online vs. Shenzhen Bingchuan Network | Bus Online vs. Penghua Shenzhen Energy |
| Shanxi Xishan vs. Zhejiang Kingland Pipeline | Shanxi Xishan vs. Xiangyang Automobile Bearing | Shanxi Xishan vs. Suzhou Novoprotein Scientific | Shanxi Xishan vs. COL Digital Publishing |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |