Correlation Between Beijing HuaYuanYiTong and Bus Online
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By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Bus Online Co, you can compare the effects of market volatilities on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Bus Online.
Diversification Opportunities for Beijing HuaYuanYiTong and Bus Online
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Bus is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong Thermal 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 Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Bus Online go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Bus Online
Assuming the 90 days trading horizon Beijing HuaYuanYiTong Thermal is expected to under-perform the Bus Online. But the stock apears to be less risky and, when comparing its historical volatility, Beijing HuaYuanYiTong Thermal is 2.56 times less risky than Bus Online. The stock trades about -0.52 of its potential returns per unit of risk. The Bus Online Co is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Bus Online Co on October 11, 2024 and sell it today you would lose (98.00) from holding Bus Online Co or give up 18.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Bus Online Co
Performance |
| Timeline |
| Beijing HuaYuanYiTong |
| Bus Online |
Beijing HuaYuanYiTong and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing HuaYuanYiTong and Bus Online
The main advantage of trading using opposite Beijing HuaYuanYiTong and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong 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.| Beijing HuaYuanYiTong vs. Zijin Mining Group | Beijing HuaYuanYiTong vs. Ningbo Fangzheng Automobile | Beijing HuaYuanYiTong vs. Western Mining Co | Beijing HuaYuanYiTong vs. Jinhui Mining Co |
| Bus Online vs. Henan Shuanghui Investment | Bus Online vs. Tieling Newcity Investment | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. Beijing HuaYuanYiTong Thermal |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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