Correlation Between Fujian Longzhou and Bus Online
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Bus Online Co, you can compare the effects of market volatilities on Fujian Longzhou and Bus Online 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 Fujian Longzhou with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Bus Online.
Diversification Opportunities for Fujian Longzhou and Bus Online
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Bus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Fujian Longzhou 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 Fujian Longzhou Transportation are associated (or correlated) with Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Fujian Longzhou i.e., Fujian Longzhou and Bus Online go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Bus Online
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.18 times more return on investment than Bus Online. However, Fujian Longzhou is 1.18 times more volatile than Bus Online Co. It trades about 0.01 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.03 per unit of risk. If you would invest 457.00 in Fujian Longzhou Transportation on October 16, 2024 and sell it today you would lose (60.00) from holding Fujian Longzhou Transportation or give up 13.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Bus Online Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Bus Online |
Fujian Longzhou and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Bus Online
The main advantage of trading using opposite Fujian Longzhou and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Fujian Longzhou vs. Qtone Education Group | Fujian Longzhou vs. Shanghai Action Education | Fujian Longzhou vs. Xinjiang Baodi Mining | Fujian Longzhou vs. Northern United Publishing |
| Bus Online vs. Fujian Longzhou Transportation | Bus Online vs. Great Sun Foods Co | Bus Online vs. Jiahe Foods Industry | Bus Online vs. Shuhua Sports 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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