Correlation Between Bus Online and Jahen Household
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By analyzing existing cross correlation between Bus Online Co and Jahen Household Products, you can compare the effects of market volatilities on Bus Online and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Jahen Household.
Diversification Opportunities for Bus Online and Jahen Household
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bus and Jahen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Bus Online i.e., Bus Online and Jahen Household go up and down completely randomly.
Pair Corralation between Bus Online and Jahen Household
Assuming the 90 days trading horizon Bus Online Co is expected to generate 1.19 times more return on investment than Jahen Household. However, Bus Online is 1.19 times more volatile than Jahen Household Products. It trades about -0.17 of its potential returns per unit of risk. Jahen Household Products is currently generating about -0.31 per unit of risk. If you would invest 523.00 in Bus Online Co on October 11, 2024 and sell it today you would lose (98.00) from holding Bus Online Co or give up 18.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Jahen Household Products
Performance |
| Timeline |
| Bus Online |
| Jahen Household Products |
Bus Online and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Jahen Household
The main advantage of trading using opposite Bus Online and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| Bus Online vs. Henan Shuanghui Investment | Bus Online vs. Tieling Newcity Investment | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. Beijing HuaYuanYiTong Thermal |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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