Correlation Between Bus Online and Shandong Ruifeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bus Online Co and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Bus Online and Shandong Ruifeng 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 Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Shandong Ruifeng.
Diversification Opportunities for Bus Online and Shandong Ruifeng
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bus and Shandong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical 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 Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Bus Online i.e., Bus Online and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Bus Online and Shandong Ruifeng
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Shandong Ruifeng. But the stock apears to be less risky and, when comparing its historical volatility, Bus Online Co is 1.1 times less risky than Shandong Ruifeng. The stock trades about 0.0 of its potential returns per unit of risk. The Shandong Ruifeng Chemical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 874.00 in Shandong Ruifeng Chemical on September 3, 2024 and sell it today you would earn a total of 226.00 from holding Shandong Ruifeng Chemical or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Bus Online |
| Shandong Ruifeng Chemical |
Bus Online and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Shandong Ruifeng
The main advantage of trading using opposite Bus Online and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Shandong Ruifeng 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 Ruifeng will offset losses from the drop in Shandong Ruifeng'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 |
| Shandong Ruifeng vs. Beijing Bashi Media | Shandong Ruifeng vs. Air China Ltd | Shandong Ruifeng vs. Inly Media Co | Shandong Ruifeng vs. Bus Online 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |