Correlation Between Bus Online and YiDong Electronics
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By analyzing existing cross correlation between Bus Online Co and YiDong Electronics Technology, you can compare the effects of market volatilities on Bus Online and YiDong Electronics 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 YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and YiDong Electronics.
Diversification Opportunities for Bus Online and YiDong Electronics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bus and YiDong is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics 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 YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of Bus Online i.e., Bus Online and YiDong Electronics go up and down completely randomly.
Pair Corralation between Bus Online and YiDong Electronics
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the YiDong Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Bus Online Co is 1.72 times less risky than YiDong Electronics. The stock trades about -0.18 of its potential returns per unit of risk. The YiDong Electronics Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,231 in YiDong Electronics Technology on October 28, 2024 and sell it today you would earn a total of 181.00 from holding YiDong Electronics Technology or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. YiDong Electronics Technology
Performance |
| Timeline |
| Bus Online |
| YiDong Electronics |
Bus Online and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and YiDong Electronics
The main advantage of trading using opposite Bus Online and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| Bus Online vs. Holitech Technology Co | Bus Online vs. Gome Telecom Equipment | Bus Online vs. Cultural Investment Holdings | Bus Online vs. Danhua Chemical Technology |
| YiDong Electronics vs. Weihai Honglin Electronic | YiDong Electronics vs. JCHX Mining Management | YiDong Electronics vs. Integrated Electronic Systems | YiDong Electronics vs. Guangdong Ellington Electronics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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