Correlation Between Bus Online and Gotion High
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By analyzing existing cross correlation between Bus Online Co and Gotion High tech, you can compare the effects of market volatilities on Bus Online and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Gotion High.
Diversification Opportunities for Bus Online and Gotion High
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Gotion is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Bus Online i.e., Bus Online and Gotion High go up and down completely randomly.
Pair Corralation between Bus Online and Gotion High
Assuming the 90 days trading horizon Bus Online Co is expected to generate 0.7 times more return on investment than Gotion High. However, Bus Online Co is 1.44 times less risky than Gotion High. It trades about 0.15 of its potential returns per unit of risk. Gotion High tech is currently generating about 0.07 per unit of risk. If you would invest 473.00 in Bus Online Co on September 2, 2024 and sell it today you would earn a total of 33.00 from holding Bus Online Co or generate 6.98% 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. Gotion High tech
Performance |
| Timeline |
| Bus Online |
| Gotion High tech |
Bus Online and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Gotion High
The main advantage of trading using opposite Bus Online and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High'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 |
| Gotion High vs. Cultural Investment Holdings | Gotion High vs. Gome Telecom Equipment | Gotion High vs. Bus Online Co | Gotion High 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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