Correlation Between ButOne Information and Long Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between ButOne Information Corp and Long Yuan Construction, you can compare the effects of market volatilities on ButOne Information and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Long Yuan.
Diversification Opportunities for ButOne Information and Long Yuan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ButOne and Long is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of ButOne Information i.e., ButOne Information and Long Yuan go up and down completely randomly.
Pair Corralation between ButOne Information and Long Yuan
Assuming the 90 days trading horizon ButOne Information Corp is expected to under-perform the Long Yuan. In addition to that, ButOne Information is 1.5 times more volatile than Long Yuan Construction. It trades about -0.24 of its total potential returns per unit of risk. Long Yuan Construction is currently generating about -0.27 per unit of volatility. If you would invest 415.00 in Long Yuan Construction on October 10, 2024 and sell it today you would lose (61.00) from holding Long Yuan Construction or give up 14.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Long Yuan Construction
Performance |
| Timeline |
| ButOne Information Corp |
| Long Yuan Construction |
ButOne Information and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Long Yuan
The main advantage of trading using opposite ButOne Information and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| ButOne Information vs. Inspur Software Co | ButOne Information vs. GreenTech Environmental Co | ButOne Information vs. Fujian Boss Software | ButOne Information vs. Guangdong Liantai Environmental |
| Long Yuan vs. Agricultural Bank of | Long Yuan vs. Industrial and Commercial | Long Yuan vs. Bank of China | Long Yuan vs. PetroChina Co Ltd |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |