Correlation Between Bus Online and Nanjing Putian
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By analyzing existing cross correlation between Bus Online Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Bus Online and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Nanjing Putian.
Diversification Opportunities for Bus Online and Nanjing Putian
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and Nanjing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Bus Online i.e., Bus Online and Nanjing Putian go up and down completely randomly.
Pair Corralation between Bus Online and Nanjing Putian
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Bus Online Co is 1.23 times less risky than Nanjing Putian. The stock trades about -0.18 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 385.00 in Nanjing Putian Telecommunications on October 28, 2024 and sell it today you would earn a total of 13.00 from holding Nanjing Putian Telecommunications or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Bus Online |
| Nanjing Putian Telec |
Bus Online and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Nanjing Putian
The main advantage of trading using opposite Bus Online and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Bus Online vs. Bank of Communications | Bus Online vs. Jilin Jlu Communication | Bus Online vs. Tongyu Communication | Bus Online vs. Threes Company Media |
| Nanjing Putian vs. Guangdong Qunxing Toys | Nanjing Putian vs. Kuang Chi Technologies | Nanjing Putian vs. Offshore Oil Engineering | Nanjing Putian vs. Jilin Jlu Communication |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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