Correlation Between ButOne Information and Chengdu B
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By analyzing existing cross correlation between ButOne Information Corp and Chengdu B ray Media, you can compare the effects of market volatilities on ButOne Information and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Chengdu B.
Diversification Opportunities for ButOne Information and Chengdu B
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ButOne and Chengdu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of ButOne Information i.e., ButOne Information and Chengdu B go up and down completely randomly.
Pair Corralation between ButOne Information and Chengdu B
Assuming the 90 days trading horizon ButOne Information Corp is expected to under-perform the Chengdu B. But the stock apears to be less risky and, when comparing its historical volatility, ButOne Information Corp is 1.44 times less risky than Chengdu B. The stock trades about -0.06 of its potential returns per unit of risk. The Chengdu B ray Media is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 497.00 in Chengdu B ray Media on October 30, 2024 and sell it today you would lose (48.00) from holding Chengdu B ray Media or give up 9.66% 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. Chengdu B ray Media
Performance |
| Timeline |
| ButOne Information Corp |
| Chengdu B ray |
ButOne Information and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Chengdu B
The main advantage of trading using opposite ButOne Information and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| ButOne Information vs. Wasu Media Holding | ButOne Information vs. Guangzhou Jinyi Media | ButOne Information vs. Shanghai Xinhua Media | ButOne Information vs. Harvest Fund Management |
| Chengdu B vs. Silkroad Visual Technology | Chengdu B vs. Guangzhou Tinci Materials | Chengdu B vs. Swancor Advanced Materials | Chengdu B vs. Shanghai Broadband Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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