Correlation Between Bus Online and Changchun
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By analyzing existing cross correlation between Bus Online Co and Changchun UP Optotech, you can compare the effects of market volatilities on Bus Online and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Changchun.
Diversification Opportunities for Bus Online and Changchun
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bus and Changchun is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Bus Online i.e., Bus Online and Changchun go up and down completely randomly.
Pair Corralation between Bus Online and Changchun
Assuming the 90 days trading horizon Bus Online Co is expected to generate 1.03 times more return on investment than Changchun. However, Bus Online is 1.03 times more volatile than Changchun UP Optotech. It trades about 0.08 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.03 per unit of risk. If you would invest 446.00 in Bus Online Co on January 23, 2025 and sell it today you would earn a total of 21.00 from holding Bus Online Co or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Changchun UP Optotech
Performance |
| Timeline |
| Bus Online |
| Changchun UP Optotech |
Bus Online and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Changchun
The main advantage of trading using opposite Bus Online and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Bus Online vs. Jiangsu Yueda Investment | Bus Online vs. Tieling Newcity Investment | Bus Online vs. Shenyang Blue Silver | Bus Online vs. Zijin Mining Group |
| Changchun vs. Kweichow Moutai Co | Changchun vs. BYD Co Ltd | Changchun vs. G bits Network Technology | Changchun vs. Contemporary Amperex Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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