Correlation Between Bus Online and Guangxi Wuzhou
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By analyzing existing cross correlation between Bus Online Co and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Bus Online and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Guangxi Wuzhou.
Diversification Opportunities for Bus Online and Guangxi Wuzhou
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Guangxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Bus Online i.e., Bus Online and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Bus Online and Guangxi Wuzhou
Assuming the 90 days trading horizon Bus Online Co is expected to generate 1.51 times more return on investment than Guangxi Wuzhou. However, Bus Online is 1.51 times more volatile than Guangxi Wuzhou Communications. It trades about 0.19 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.15 per unit of risk. If you would invest 475.00 in Bus Online Co on September 4, 2024 and sell it today you would earn a total of 45.00 from holding Bus Online Co or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Bus Online |
| Guangxi Wuzhou Commu |
Bus Online and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Guangxi Wuzhou
The main advantage of trading using opposite Bus Online and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Bus Online vs. Industrial and Commercial | Bus Online vs. China Construction Bank | Bus Online vs. Bank of China | Bus Online vs. Agricultural Bank of |
| Guangxi Wuzhou vs. China State Construction | Guangxi Wuzhou vs. Poly Real Estate | Guangxi Wuzhou vs. China Vanke Co | Guangxi Wuzhou vs. China Merchants Shekou |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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