Correlation Between Bus Online and Hefei Metalforming
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By analyzing existing cross correlation between Bus Online Co and Hefei Metalforming Mach, you can compare the effects of market volatilities on Bus Online and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Hefei Metalforming.
Diversification Opportunities for Bus Online and Hefei Metalforming
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Hefei is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Bus Online i.e., Bus Online and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Bus Online and Hefei Metalforming
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, Bus Online Co is 1.05 times less risky than Hefei Metalforming. The stock trades about 0.0 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 670.00 in Hefei Metalforming Mach on September 4, 2024 and sell it today you would earn a total of 127.00 from holding Hefei Metalforming Mach or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Bus Online |
| Hefei Metalforming Mach |
Bus Online and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Hefei Metalforming
The main advantage of trading using opposite Bus Online and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Bus Online vs. Industrial and Commercial | Bus Online vs. China Construction Bank | Bus Online vs. Bank of China | Bus Online vs. Agricultural Bank of |
| Hefei Metalforming vs. Chengdu Kanghua Biological | Hefei Metalforming vs. Beijing Wantai Biological | Hefei Metalforming vs. Suzhou Novoprotein Scientific | Hefei Metalforming vs. Aluminum Corp of |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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