Correlation Between Bus Online and Beijing Sanyuan
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By analyzing existing cross correlation between Bus Online Co and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Bus Online and Beijing Sanyuan 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 Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Beijing Sanyuan.
Diversification Opportunities for Bus Online and Beijing Sanyuan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Beijing is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Bus Online i.e., Bus Online and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Bus Online and Beijing Sanyuan
Assuming the 90 days trading horizon Bus Online Co is expected to generate 1.99 times more return on investment than Beijing Sanyuan. However, Bus Online is 1.99 times more volatile than Beijing Sanyuan Foods. It trades about -0.01 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.02 per unit of risk. If you would invest 714.00 in Bus Online Co on August 29, 2024 and sell it today you would lose (222.00) from holding Bus Online Co or give up 31.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Bus Online |
| Beijing Sanyuan Foods |
Bus Online and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Beijing Sanyuan
The main advantage of trading using opposite Bus Online and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Beijing Sanyuan 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 Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Bus Online vs. China State Construction | Bus Online vs. Huafa Industrial Co | Bus Online vs. China International Capital | Bus Online vs. Kweichow Moutai Co |
| Beijing Sanyuan vs. Heilongjiang Transport Development | Beijing Sanyuan vs. Hainan Haiqi Transportation | Beijing Sanyuan vs. Advanced Technology Materials | Beijing Sanyuan vs. GRIPM Advanced Materials |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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