Correlation Between Bus Online and Gem Year
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By analyzing existing cross correlation between Bus Online Co and Gem Year Industrial Co, you can compare the effects of market volatilities on Bus Online and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Gem Year.
Diversification Opportunities for Bus Online and Gem Year
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Gem is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Bus Online i.e., Bus Online and Gem Year go up and down completely randomly.
Pair Corralation between Bus Online and Gem Year
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Gem Year. In addition to that, Bus Online is 1.46 times more volatile than Gem Year Industrial Co. It trades about 0.0 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.0 per unit of volatility. If you would invest 475.00 in Gem Year Industrial Co on September 3, 2024 and sell it today you would lose (31.00) from holding Gem Year Industrial Co or give up 6.53% 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. Gem Year Industrial Co
Performance |
| Timeline |
| Bus Online |
| Gem Year Industrial |
Bus Online and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Gem Year
The main advantage of trading using opposite Bus Online and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Bus Online vs. Anhui Transport Consulting | Bus Online vs. Sino Platinum Metals Co | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. China Aluminum International |
| Gem Year vs. Cultural Investment Holdings | Gem Year vs. Gome Telecom Equipment | Gem Year vs. Bus Online Co | Gem Year 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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