Correlation Between ButOne Information and China Asset
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By analyzing existing cross correlation between ButOne Information Corp and China Asset Management, you can compare the effects of market volatilities on ButOne Information and China Asset 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 ButOne Information with a short position of China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and China Asset.
Diversification Opportunities for ButOne Information and China Asset
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ButOne and China is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management and ButOne 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 ButOne Information Corp are associated (or correlated) with China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of ButOne Information i.e., ButOne Information and China Asset go up and down completely randomly.
Pair Corralation between ButOne Information and China Asset
Assuming the 90 days trading horizon ButOne Information Corp is expected to under-perform the China Asset. In addition to that, ButOne Information is 3.4 times more volatile than China Asset Management. It trades about 0.0 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.09 per unit of volatility. If you would invest 266.00 in China Asset Management on October 13, 2024 and sell it today you would earn a total of 111.00 from holding China Asset Management or generate 41.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. China Asset Management
Performance |
| Timeline |
| ButOne Information Corp |
| China Asset Management |
ButOne Information and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and China Asset
The main advantage of trading using opposite ButOne Information and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.The idea behind ButOne Information Corp and China Asset Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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