Correlation Between Tibet Huayu and Bus Online
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By analyzing existing cross correlation between Tibet Huayu Mining and Bus Online Co, you can compare the effects of market volatilities on Tibet Huayu and Bus Online 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 Tibet Huayu with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Bus Online.
Diversification Opportunities for Tibet Huayu and Bus Online
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Bus is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Tibet Huayu 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 Tibet Huayu Mining are associated (or correlated) with Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Bus Online go up and down completely randomly.
Pair Corralation between Tibet Huayu and Bus Online
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 0.77 times more return on investment than Bus Online. However, Tibet Huayu Mining is 1.3 times less risky than Bus Online. It trades about 0.15 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.11 per unit of risk. If you would invest 1,311 in Tibet Huayu Mining on October 29, 2024 and sell it today you would earn a total of 93.00 from holding Tibet Huayu Mining or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Bus Online Co
Performance |
| Timeline |
| Tibet Huayu Mining |
| Bus Online |
Tibet Huayu and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Bus Online
The main advantage of trading using opposite Tibet Huayu and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
| Bus Online vs. Bank of Communications | Bus Online vs. Jilin Jlu Communication | Bus Online vs. Tongyu Communication | Bus Online vs. Threes Company Media |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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