Correlation Between Bank of China and Bus Online
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By analyzing existing cross correlation between Bank of China and Bus Online Co, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Bus Online.
Diversification Opportunities for Bank of China and Bus Online
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Bus is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Bus Online go up and down completely randomly.
Pair Corralation between Bank of China and Bus Online
Assuming the 90 days trading horizon Bank of China is expected to generate 2.3 times less return on investment than Bus Online. But when comparing it to its historical volatility, Bank of China is 2.41 times less risky than Bus Online. It trades about 0.19 of its potential returns per unit of risk. Bus Online Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 475.00 in Bus Online Co on September 4, 2024 and sell it today you would earn a total of 44.00 from holding Bus Online Co or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Bus Online Co
Performance |
| Timeline |
| Bank of China |
| Bus Online |
Bank of China and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Bus Online
The main advantage of trading using opposite Bank of China and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Servyou Software Group | Bank of China vs. Keli Sensing Technology | Bank of China vs. Linewell Software Co | Bank of China vs. Bus Online Co |
| Bus Online vs. Industrial and Commercial | Bus Online vs. China Construction Bank | Bus Online vs. Bank of China | Bus Online vs. Agricultural Bank of |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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