Correlation Between Bus Online and Ningxia Building
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By analyzing existing cross correlation between Bus Online Co and Ningxia Building Materials, you can compare the effects of market volatilities on Bus Online and Ningxia Building 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 Ningxia Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Ningxia Building.
Diversification Opportunities for Bus Online and Ningxia Building
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and Ningxia is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Ningxia Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Building Mat 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 Ningxia Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Building Mat has no effect on the direction of Bus Online i.e., Bus Online and Ningxia Building go up and down completely randomly.
Pair Corralation between Bus Online and Ningxia Building
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Ningxia Building. But the stock apears to be less risky and, when comparing its historical volatility, Bus Online Co is 1.03 times less risky than Ningxia Building. The stock trades about -0.02 of its potential returns per unit of risk. The Ningxia Building Materials is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,184 in Ningxia Building Materials on October 16, 2024 and sell it today you would earn a total of 83.00 from holding Ningxia Building Materials or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Ningxia Building Materials
Performance |
| Timeline |
| Bus Online |
| Ningxia Building Mat |
Bus Online and Ningxia Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Ningxia Building
The main advantage of trading using opposite Bus Online and Ningxia Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Ningxia Building 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 Ningxia Building will offset losses from the drop in Ningxia Building's long position.| Bus Online vs. Ziel Home Furnishing | Bus Online vs. Hunan Investment Group | Bus Online vs. Harbin Hatou Investment | Bus Online vs. Vohringer Home Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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