Correlation Between Bus Online and Shandong Mining
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By analyzing existing cross correlation between Bus Online Co and Shandong Mining Machinery, you can compare the effects of market volatilities on Bus Online and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Shandong Mining.
Diversification Opportunities for Bus Online and Shandong Mining
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Shandong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Bus Online i.e., Bus Online and Shandong Mining go up and down completely randomly.
Pair Corralation between Bus Online and Shandong Mining
Assuming the 90 days trading horizon Bus Online is expected to generate 4.39 times less return on investment than Shandong Mining. But when comparing it to its historical volatility, Bus Online Co is 1.93 times less risky than Shandong Mining. It trades about 0.15 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Shandong Mining Machinery on September 2, 2024 and sell it today you would earn a total of 93.00 from holding Shandong Mining Machinery or generate 34.83% 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. Shandong Mining Machinery
Performance |
| Timeline |
| Bus Online |
| Shandong Mining Machinery |
Bus Online and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Shandong Mining
The main advantage of trading using opposite Bus Online and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining'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 |
| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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