Correlation Between Bus Online and Dow Jones
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By analyzing existing cross correlation between Bus Online Co and Dow Jones Industrial, you can compare the effects of market volatilities on Bus Online and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Dow Jones.
Diversification Opportunities for Bus Online and Dow Jones
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bus and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Bus Online i.e., Bus Online and Dow Jones go up and down completely randomly.
Pair Corralation between Bus Online and Dow Jones
Assuming the 90 days trading horizon Bus Online is expected to generate 6.51 times less return on investment than Dow Jones. In addition to that, Bus Online is 2.63 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Bus Online Co vs. Dow Jones Industrial
Performance |
Timeline |
Bus Online and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Bus Online Co
Pair trading matchups for Bus Online
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bus Online and Dow Jones
The main advantage of trading using opposite Bus Online and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Bus Online vs. China State Construction | Bus Online vs. Huafa Industrial Co | Bus Online vs. China International Capital | Bus Online vs. Kweichow Moutai Co |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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