Correlation Between Bus Online and Cultural Investment
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By analyzing existing cross correlation between Bus Online Co and Cultural Investment Holdings, you can compare the effects of market volatilities on Bus Online and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Cultural Investment.
Diversification Opportunities for Bus Online and Cultural Investment
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bus and Cultural is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Bus Online i.e., Bus Online and Cultural Investment go up and down completely randomly.
Pair Corralation between Bus Online and Cultural Investment
Assuming the 90 days trading horizon Bus Online is expected to generate 17.82 times less return on investment than Cultural Investment. But when comparing it to its historical volatility, Bus Online Co is 1.38 times less risky than Cultural Investment. It trades about 0.01 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 201.00 in Cultural Investment Holdings on August 28, 2024 and sell it today you would earn a total of 23.00 from holding Cultural Investment Holdings or generate 11.44% 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. Cultural Investment Holdings
Performance |
| Timeline |
| Bus Online |
| Cultural Investment |
Bus Online and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Cultural Investment
The main advantage of trading using opposite Bus Online and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Bus Online vs. Shenzhen MYS Environmental | Bus Online vs. AVIC Fund Management | Bus Online vs. Shenzhen Bingchuan Network | Bus Online vs. Penghua Shenzhen Energy |
| Cultural Investment vs. Omnijoi Media Corp | Cultural Investment vs. JiShi Media Co | Cultural Investment vs. Focus Media Information | Cultural Investment vs. Henan Shuanghui Investment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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