Correlation Between Bus Online and Beijing Enlight
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By analyzing existing cross correlation between Bus Online Co and Beijing Enlight Media, you can compare the effects of market volatilities on Bus Online and Beijing Enlight 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 Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Beijing Enlight.
Diversification Opportunities for Bus Online and Beijing Enlight
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bus and Beijing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media 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 Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Bus Online i.e., Bus Online and Beijing Enlight go up and down completely randomly.
Pair Corralation between Bus Online and Beijing Enlight
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Beijing Enlight. In addition to that, Bus Online is 2.0 times more volatile than Beijing Enlight Media. It trades about -0.09 of its total potential returns per unit of risk. Beijing Enlight Media is currently generating about -0.04 per unit of volatility. If you would invest 955.00 in Beijing Enlight Media on October 20, 2024 and sell it today you would lose (25.00) from holding Beijing Enlight Media or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Beijing Enlight Media
Performance |
| Timeline |
| Bus Online |
| Beijing Enlight Media |
Bus Online and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Beijing Enlight
The main advantage of trading using opposite Bus Online and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Beijing Enlight 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 Beijing Enlight will offset losses from the drop in Beijing Enlight's long position.| Bus Online vs. Liaoning Dingjide Petrochemical | Bus Online vs. Guangzhou Haozhi Industrial | Bus Online vs. Rising Nonferrous Metals | Bus Online vs. Liuzhou Chemical Industry |
| Beijing Enlight vs. State Grid InformationCommunication | Beijing Enlight vs. SSAW Hotels Resorts | Beijing Enlight vs. Jinxiandai Information Industry | Beijing Enlight vs. Sharetronic Data 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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