Correlation Between ButOne Information and Eastern Communications
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By analyzing existing cross correlation between ButOne Information Corp and Eastern Communications Co, you can compare the effects of market volatilities on ButOne Information and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Eastern Communications.
Diversification Opportunities for ButOne Information and Eastern Communications
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ButOne and Eastern is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of ButOne Information i.e., ButOne Information and Eastern Communications go up and down completely randomly.
Pair Corralation between ButOne Information and Eastern Communications
Assuming the 90 days trading horizon ButOne Information Corp is expected to under-perform the Eastern Communications. In addition to that, ButOne Information is 1.72 times more volatile than Eastern Communications Co. It trades about -0.06 of its total potential returns per unit of risk. Eastern Communications Co is currently generating about -0.08 per unit of volatility. If you would invest 43.00 in Eastern Communications Co on October 30, 2024 and sell it today you would lose (3.00) from holding Eastern Communications Co or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Eastern Communications Co
Performance |
| Timeline |
| ButOne Information Corp |
| Eastern Communications |
ButOne Information and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Eastern Communications
The main advantage of trading using opposite ButOne Information and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' 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 |
| Eastern Communications vs. Bus Online Co | Eastern Communications vs. Holitech Technology Co | Eastern Communications vs. Gome Telecom Equipment | Eastern Communications vs. Cultural Investment Holdings |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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