Correlation Between Bus Online and Shanghai Metersbonwe
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By analyzing existing cross correlation between Bus Online Co and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Bus Online and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Shanghai Metersbonwe.
Diversification Opportunities for Bus Online and Shanghai Metersbonwe
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Bus Online i.e., Bus Online and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Bus Online and Shanghai Metersbonwe
Assuming the 90 days trading horizon Bus Online is expected to generate 1.68 times less return on investment than Shanghai Metersbonwe. But when comparing it to its historical volatility, Bus Online Co is 1.23 times less risky than Shanghai Metersbonwe. It trades about 0.15 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Shanghai Metersbonwe FashionAccessories on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Shanghai Metersbonwe FashionAccessories or generate 48.53% 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. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Bus Online |
| Shanghai Metersbonwe |
Bus Online and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Shanghai Metersbonwe
The main advantage of trading using opposite Bus Online and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe'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 |
| Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. China Mobile Limited | Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. China Life Insurance |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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