Correlation Between Bus Online and China Publishing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bus Online Co and China Publishing Media, you can compare the effects of market volatilities on Bus Online and China Publishing 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 Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and China Publishing.
Diversification Opportunities for Bus Online and China Publishing
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and China is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Bus Online i.e., Bus Online and China Publishing go up and down completely randomly.
Pair Corralation between Bus Online and China Publishing
Assuming the 90 days trading horizon Bus Online Co is expected to generate 1.73 times more return on investment than China Publishing. However, Bus Online is 1.73 times more volatile than China Publishing Media. It trades about 0.16 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.1 per unit of risk. If you would invest 404.00 in Bus Online Co on November 5, 2024 and sell it today you would earn a total of 29.00 from holding Bus Online Co or generate 7.18% 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. China Publishing Media
Performance |
| Timeline |
| Bus Online |
| China Publishing Media |
Bus Online and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and China Publishing
The main advantage of trading using opposite Bus Online and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, China Publishing 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 Publishing will offset losses from the drop in China Publishing's long position.| Bus Online vs. Lotus Health Group | Bus Online vs. Fibocom Wireless | Bus Online vs. Healthcare Co | Bus Online vs. Beijing Kingsoft Office |
| China Publishing vs. Jinling Hotel Corp | China Publishing vs. Hainan Mining Co | China Publishing vs. Shengda Mining Co | China Publishing vs. Guocheng Mining 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |