Correlation Between Bus Online and AIMA Technology
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By analyzing existing cross correlation between Bus Online Co and AIMA Technology Group, you can compare the effects of market volatilities on Bus Online and AIMA 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 AIMA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and AIMA Technology.
Diversification Opportunities for Bus Online and AIMA Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bus and AIMA is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and AIMA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIMA Technology Group 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 AIMA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIMA Technology Group has no effect on the direction of Bus Online i.e., Bus Online and AIMA Technology go up and down completely randomly.
Pair Corralation between Bus Online and AIMA Technology
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the AIMA Technology. In addition to that, Bus Online is 1.22 times more volatile than AIMA Technology Group. It trades about -0.01 of its total potential returns per unit of risk. AIMA Technology Group is currently generating about 0.02 per unit of volatility. If you would invest 3,509 in AIMA Technology Group on August 28, 2024 and sell it today you would earn a total of 266.00 from holding AIMA Technology Group or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. AIMA Technology Group
Performance |
| Timeline |
| Bus Online |
| AIMA Technology Group |
Bus Online and AIMA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and AIMA Technology
The main advantage of trading using opposite Bus Online and AIMA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, AIMA 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 AIMA Technology will offset losses from the drop in AIMA Technology's long position.| Bus Online vs. Shenzhen MYS Environmental | Bus Online vs. AVIC Fund Management | Bus Online vs. Shenzhen Bingchuan Network | Bus Online vs. Penghua Shenzhen Energy |
| AIMA Technology vs. Eastern Communications Co | AIMA Technology vs. Shenyang Huitian Thermal | AIMA Technology vs. StarPower Semiconductor | AIMA Technology vs. Nexchip Semiconductor Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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