Correlation Between Anhui Jianghuai and Bus Online
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Bus Online Co, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Bus Online.
Diversification Opportunities for Anhui Jianghuai and Bus Online
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Bus is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Bus Online go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Bus Online
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.11 times more return on investment than Bus Online. However, Anhui Jianghuai is 1.11 times more volatile than Bus Online Co. It trades about 0.06 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 1,621 in Anhui Jianghuai Automobile on October 13, 2024 and sell it today you would earn a total of 1,904 from holding Anhui Jianghuai Automobile or generate 117.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Bus Online Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Bus Online |
Anhui Jianghuai and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Bus Online
The main advantage of trading using opposite Anhui Jianghuai and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Huayi Brothers Media | Anhui Jianghuai vs. China Reform Health | Anhui Jianghuai vs. Chengdu B ray Media | Anhui Jianghuai vs. Hengdian Entertainment Co |
| Bus Online vs. Haima Automobile Group | Bus Online vs. Shenzhen Zhongzhuang Construction | Bus Online vs. Anhui Jianghuai Automobile | Bus Online vs. Lutian Machinery 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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