Correlation Between Bus Online and Guangdong Liantai
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By analyzing existing cross correlation between Bus Online Co and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Bus Online and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Guangdong Liantai.
Diversification Opportunities for Bus Online and Guangdong Liantai
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Guangdong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Bus Online i.e., Bus Online and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Bus Online and Guangdong Liantai
Assuming the 90 days trading horizon Bus Online is expected to generate 1.62 times less return on investment than Guangdong Liantai. In addition to that, Bus Online is 1.02 times more volatile than Guangdong Liantai Environmental. It trades about 0.15 of its total potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about 0.24 per unit of volatility. If you would invest 380.00 in Guangdong Liantai Environmental on August 31, 2024 and sell it today you would earn a total of 50.00 from holding Guangdong Liantai Environmental or generate 13.16% 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. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Bus Online |
| Guangdong Liantai |
Bus Online and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Guangdong Liantai
The main advantage of trading using opposite Bus Online and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| Bus Online vs. Xinjiang Baodi Mining | Bus Online vs. Innovative Medical Management | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. Lonkey Industrial Co |
| Guangdong Liantai vs. Cultural Investment Holdings | Guangdong Liantai vs. Gome Telecom Equipment | Guangdong Liantai vs. Bus Online Co | Guangdong Liantai vs. Holitech Technology 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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