Correlation Between China International and Bus Online
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By analyzing existing cross correlation between China International Capital and Bus Online Co, you can compare the effects of market volatilities on China International 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 China International with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Bus Online.
Diversification Opportunities for China International and Bus Online
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Bus is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and China International 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 China International Capital 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 China International i.e., China International and Bus Online go up and down completely randomly.
Pair Corralation between China International and Bus Online
Assuming the 90 days trading horizon China International is expected to generate 4.11 times less return on investment than Bus Online. In addition to that, China International is 1.17 times more volatile than Bus Online Co. It trades about 0.02 of its total potential returns per unit of risk. Bus Online Co is currently generating about 0.09 per unit of volatility. If you would invest 485.00 in Bus Online Co on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Bus Online Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Bus Online Co
Performance |
| Timeline |
| China International |
| Bus Online |
China International and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Bus Online
The main advantage of trading using opposite China International and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International 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.| China International vs. Offshore Oil Engineering | China International vs. Guocheng Mining Co | China International vs. Zhengzhou Coal Mining | China International vs. Xiandai Investment Co |
| Bus Online vs. Industrial and Commercial | Bus Online vs. Kweichow Moutai Co | Bus Online vs. Agricultural Bank of | Bus Online vs. China Mobile Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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