Correlation Between ButOne Information and Baoshan Iron
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By analyzing existing cross correlation between ButOne Information Corp and Baoshan Iron Steel, you can compare the effects of market volatilities on ButOne Information and Baoshan Iron 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 Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Baoshan Iron.
Diversification Opportunities for ButOne Information and Baoshan Iron
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ButOne and Baoshan is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel 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 Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of ButOne Information i.e., ButOne Information and Baoshan Iron go up and down completely randomly.
Pair Corralation between ButOne Information and Baoshan Iron
Assuming the 90 days trading horizon ButOne Information Corp is expected to generate 1.55 times more return on investment than Baoshan Iron. However, ButOne Information is 1.55 times more volatile than Baoshan Iron Steel. It trades about 0.08 of its potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.05 per unit of risk. If you would invest 2,051 in ButOne Information Corp on November 3, 2024 and sell it today you would earn a total of 70.00 from holding ButOne Information Corp or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Baoshan Iron Steel
Performance |
| Timeline |
| ButOne Information Corp |
| Baoshan Iron Steel |
ButOne Information and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Baoshan Iron
The main advantage of trading using opposite ButOne Information and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| ButOne Information vs. Jilin Jlu Communication | ButOne Information vs. China Publishing Media | ButOne Information vs. Guangdong Jinma Entertainment | ButOne Information vs. Ciwen Media Co |
| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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