Correlation Between ButOne Information and Shaanxi Construction
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By analyzing existing cross correlation between ButOne Information Corp and Shaanxi Construction Machinery, you can compare the effects of market volatilities on ButOne Information and Shaanxi Construction 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 Shaanxi Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Shaanxi Construction.
Diversification Opportunities for ButOne Information and Shaanxi Construction
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ButOne and Shaanxi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Shaanxi Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi 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 Shaanxi Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Construction has no effect on the direction of ButOne Information i.e., ButOne Information and Shaanxi Construction go up and down completely randomly.
Pair Corralation between ButOne Information and Shaanxi Construction
Assuming the 90 days trading horizon ButOne Information Corp is expected to under-perform the Shaanxi Construction. But the stock apears to be less risky and, when comparing its historical volatility, ButOne Information Corp is 1.02 times less risky than Shaanxi Construction. The stock trades about -0.22 of its potential returns per unit of risk. The Shaanxi Construction Machinery is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 376.00 in Shaanxi Construction Machinery on October 12, 2024 and sell it today you would lose (61.00) from holding Shaanxi Construction Machinery or give up 16.22% 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. Shaanxi Construction Machinery
Performance |
| Timeline |
| ButOne Information Corp |
| Shaanxi Construction |
ButOne Information and Shaanxi Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Shaanxi Construction
The main advantage of trading using opposite ButOne Information and Shaanxi Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Shaanxi Construction 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 Shaanxi Construction will offset losses from the drop in Shaanxi Construction's long position.| ButOne Information vs. Xinjiang Beixin RoadBridge | ButOne Information vs. Unisplendour Corp | ButOne Information vs. ChengDu Hi Tech Development | ButOne Information vs. Allwin Telecommunication Co |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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