Correlation Between Bus Online and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Bus Online Co and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Bus Online and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and HUAQIN TECHNOLOGY.
Diversification Opportunities for Bus Online and HUAQIN TECHNOLOGY
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bus and HUAQIN is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Bus Online i.e., Bus Online and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Bus Online and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the HUAQIN TECHNOLOGY. In addition to that, Bus Online is 1.11 times more volatile than HUAQIN TECHNOLOGY LTD. It trades about -0.09 of its total potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.16 per unit of volatility. If you would invest 6,299 in HUAQIN TECHNOLOGY LTD on October 20, 2024 and sell it today you would earn a total of 860.00 from holding HUAQIN TECHNOLOGY LTD or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Bus Online |
| HUAQIN TECHNOLOGY LTD |
Bus Online and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Bus Online and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Bus Online vs. Liaoning Dingjide Petrochemical | Bus Online vs. Guangzhou Haozhi Industrial | Bus Online vs. Rising Nonferrous Metals | Bus Online vs. Liuzhou Chemical Industry |
| HUAQIN TECHNOLOGY vs. Anker Innovations Technology | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Hangzhou EZVIZ Network | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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