Correlation Between Bus Online and INKON Life
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By analyzing existing cross correlation between Bus Online Co and INKON Life Technology, you can compare the effects of market volatilities on Bus Online and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and INKON Life.
Diversification Opportunities for Bus Online and INKON Life
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and INKON is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Bus Online i.e., Bus Online and INKON Life go up and down completely randomly.
Pair Corralation between Bus Online and INKON Life
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the INKON Life. In addition to that, Bus Online is 2.13 times more volatile than INKON Life Technology. It trades about -0.28 of its total potential returns per unit of risk. INKON Life Technology is currently generating about -0.33 per unit of volatility. If you would invest 991.00 in INKON Life Technology on October 15, 2024 and sell it today you would lose (142.00) from holding INKON Life Technology or give up 14.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. INKON Life Technology
Performance |
| Timeline |
| Bus Online |
| INKON Life Technology |
Bus Online and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and INKON Life
The main advantage of trading using opposite Bus Online and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Bus Online vs. Zijin Mining Group | Bus Online vs. JCHX Mining Management | Bus Online vs. Tibet Huayu Mining | Bus Online vs. Xinjiang Baodi Mining |
| INKON Life vs. Spring Airlines Co | INKON Life vs. Shannon Semiconductor Technology | INKON Life vs. Harbin Air Conditioning | INKON Life vs. Yuanjie Semiconductor 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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