Correlation Between Longmaster Information and Bus Online
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By analyzing existing cross correlation between Longmaster Information Tech and Bus Online Co, you can compare the effects of market volatilities on Longmaster Information 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 Longmaster Information with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Bus Online.
Diversification Opportunities for Longmaster Information and Bus Online
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Longmaster and Bus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Longmaster Information 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 Longmaster Information Tech 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 Longmaster Information i.e., Longmaster Information and Bus Online go up and down completely randomly.
Pair Corralation between Longmaster Information and Bus Online
Assuming the 90 days trading horizon Longmaster Information Tech is expected to under-perform the Bus Online. But the stock apears to be less risky and, when comparing its historical volatility, Longmaster Information Tech is 1.54 times less risky than Bus Online. The stock trades about -0.23 of its potential returns per unit of risk. The Bus Online Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 441.00 in Bus Online Co on October 26, 2024 and sell it today you would lose (16.00) from holding Bus Online Co or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Bus Online Co
Performance |
| Timeline |
| Longmaster Information |
| Bus Online |
Longmaster Information and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Bus Online
The main advantage of trading using opposite Longmaster Information and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information 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.| Longmaster Information vs. China Life Insurance | Longmaster Information vs. Cinda Securities Co | Longmaster Information vs. Piotech Inc A | Longmaster Information vs. Dongxing Sec Co |
| Bus Online vs. Miracll Chemicals Co | Bus Online vs. Marssenger Kitchenware Co | Bus Online vs. Uroica Mining Safety | Bus Online vs. Anhui Tongguan Copper |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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