Correlation Between Bus Online and Shanghai Jinfeng
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By analyzing existing cross correlation between Bus Online Co and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Bus Online and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Shanghai Jinfeng.
Diversification Opportunities for Bus Online and Shanghai Jinfeng
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Bus Online i.e., Bus Online and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Bus Online and Shanghai Jinfeng
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Shanghai Jinfeng. In addition to that, Bus Online is 1.34 times more volatile than Shanghai Jinfeng Wine. It trades about 0.0 of its total potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.02 per unit of volatility. If you would invest 641.00 in Shanghai Jinfeng Wine on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Shanghai Jinfeng Wine or generate 3.12% 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. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Bus Online |
| Shanghai Jinfeng Wine |
Bus Online and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Shanghai Jinfeng
The main advantage of trading using opposite Bus Online and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Bus Online vs. Gansu Jiu Steel | Bus Online vs. Shandong Mining Machinery | Bus Online vs. Aba Chemicals Corp | Bus Online vs. BlueFocus Communication Group |
| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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