Correlation Between Bus Online and TianJin 712
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By analyzing existing cross correlation between Bus Online Co and TianJin 712 Communication, you can compare the effects of market volatilities on Bus Online and TianJin 712 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 TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and TianJin 712.
Diversification Opportunities for Bus Online and TianJin 712
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and TianJin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication 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 TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Bus Online i.e., Bus Online and TianJin 712 go up and down completely randomly.
Pair Corralation between Bus Online and TianJin 712
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the TianJin 712. But the stock apears to be less risky and, when comparing its historical volatility, Bus Online Co is 1.11 times less risky than TianJin 712. The stock trades about -0.03 of its potential returns per unit of risk. The TianJin 712 Communication is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,778 in TianJin 712 Communication on October 14, 2024 and sell it today you would lose (176.00) from holding TianJin 712 Communication or give up 9.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. TianJin 712 Communication
Performance |
| Timeline |
| Bus Online |
| TianJin 712 Communication |
Bus Online and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and TianJin 712
The main advantage of trading using opposite Bus Online and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712's long position.| Bus Online vs. Zijin Mining Group | Bus Online vs. JCHX Mining Management | Bus Online vs. Tibet Huayu Mining | Bus Online vs. Xinjiang Baodi Mining |
| TianJin 712 vs. Bus Online Co | TianJin 712 vs. Yindu Kitchen Equipment | TianJin 712 vs. Shandong Homey Aquatic | TianJin 712 vs. Anhui Gujing Distillery |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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