Correlation Between ButOne Information and Western Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between ButOne Information Corp and Western Mining Co, you can compare the effects of market volatilities on ButOne Information and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Western Mining.
Diversification Opportunities for ButOne Information and Western Mining
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ButOne and Western is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of ButOne Information i.e., ButOne Information and Western Mining go up and down completely randomly.
Pair Corralation between ButOne Information and Western Mining
Assuming the 90 days trading horizon ButOne Information is expected to generate 2.16 times less return on investment than Western Mining. In addition to that, ButOne Information is 1.38 times more volatile than Western Mining Co. It trades about 0.02 of its total potential returns per unit of risk. Western Mining Co is currently generating about 0.06 per unit of volatility. If you would invest 1,178 in Western Mining Co on September 12, 2024 and sell it today you would earn a total of 498.00 from holding Western Mining Co or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Western Mining Co
Performance |
| Timeline |
| ButOne Information Corp |
| Western Mining |
ButOne Information and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Western Mining
The main advantage of trading using opposite ButOne Information and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining's long position.| ButOne Information vs. Lutian Machinery Co | ButOne Information vs. PetroChina Co Ltd | ButOne Information vs. Bank of China | ButOne Information vs. Gansu Jiu Steel |
| Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |