Correlation Between Bus Online and Qinghaihuading Industrial
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By analyzing existing cross correlation between Bus Online Co and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Bus Online and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Qinghaihuading Industrial.
Diversification Opportunities for Bus Online and Qinghaihuading Industrial
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bus and Qinghaihuading is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Bus Online i.e., Bus Online and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Bus Online and Qinghaihuading Industrial
Assuming the 90 days trading horizon Bus Online is expected to generate 2.46 times less return on investment than Qinghaihuading Industrial. But when comparing it to its historical volatility, Bus Online Co is 1.19 times less risky than Qinghaihuading Industrial. It trades about 0.05 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 300.00 in Qinghaihuading Industrial Co on September 2, 2024 and sell it today you would earn a total of 145.00 from holding Qinghaihuading Industrial Co or generate 48.33% 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. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Bus Online |
| Qinghaihuading Industrial |
Bus Online and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Qinghaihuading Industrial
The main advantage of trading using opposite Bus Online and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Bus Online vs. Industrial and Commercial | Bus Online vs. Kweichow Moutai Co | Bus Online vs. Agricultural Bank of | Bus Online vs. China Mobile Limited |
| Qinghaihuading Industrial vs. New China Life | Qinghaihuading Industrial vs. Ming Yang Smart | Qinghaihuading Industrial vs. 159681 | Qinghaihuading Industrial vs. 159005 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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