Correlation Between Bus Online and China Zheshang
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By analyzing existing cross correlation between Bus Online Co and China Zheshang Bank, you can compare the effects of market volatilities on Bus Online and China Zheshang 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 China Zheshang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and China Zheshang.
Diversification Opportunities for Bus Online and China Zheshang
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bus and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and China Zheshang Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Zheshang Bank 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 China Zheshang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Zheshang Bank has no effect on the direction of Bus Online i.e., Bus Online and China Zheshang go up and down completely randomly.
Pair Corralation between Bus Online and China Zheshang
Assuming the 90 days trading horizon Bus Online Co is expected to generate 1.96 times more return on investment than China Zheshang. However, Bus Online is 1.96 times more volatile than China Zheshang Bank. It trades about 0.09 of its potential returns per unit of risk. China Zheshang Bank is currently generating about 0.08 per unit of risk. If you would invest 485.00 in Bus Online Co on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Bus Online Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bus Online Co vs. China Zheshang Bank
Performance |
| Timeline |
| Bus Online |
| China Zheshang Bank |
Bus Online and China Zheshang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and China Zheshang
The main advantage of trading using opposite Bus Online and China Zheshang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, China Zheshang 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 China Zheshang will offset losses from the drop in China Zheshang's long position.| Bus Online vs. Industrial and Commercial | Bus Online vs. Kweichow Moutai Co | Bus Online vs. Agricultural Bank of | Bus Online vs. China Mobile Limited |
| China Zheshang vs. Cultural Investment Holdings | China Zheshang vs. Bus Online Co | China Zheshang vs. Holitech Technology Co | China Zheshang vs. Zotye Automobile 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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