Correlation Between Bus Online and Fujian Oriental
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By analyzing existing cross correlation between Bus Online Co and Fujian Oriental Silver, you can compare the effects of market volatilities on Bus Online and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Fujian Oriental.
Diversification Opportunities for Bus Online and Fujian Oriental
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and Fujian is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Bus Online i.e., Bus Online and Fujian Oriental go up and down completely randomly.
Pair Corralation between Bus Online and Fujian Oriental
Assuming the 90 days trading horizon Bus Online is expected to generate 2.38 times less return on investment than Fujian Oriental. But when comparing it to its historical volatility, Bus Online Co is 1.42 times less risky than Fujian Oriental. It trades about 0.03 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 547.00 in Fujian Oriental Silver on September 25, 2024 and sell it today you would earn a total of 108.00 from holding Fujian Oriental Silver or generate 19.74% 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. Fujian Oriental Silver
Performance |
| Timeline |
| Bus Online |
| Fujian Oriental Silver |
Bus Online and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Fujian Oriental
The main advantage of trading using opposite Bus Online and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Bus Online vs. Industrial and Commercial | Bus Online vs. Agricultural Bank of | Bus Online vs. China Construction Bank | Bus Online vs. Bank of China |
| Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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