Correlation Between Bus Online and Oppein Home
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By analyzing existing cross correlation between Bus Online Co and Oppein Home Group, you can compare the effects of market volatilities on Bus Online and Oppein Home 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 Bus Online with a short position of Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Oppein Home.
Diversification Opportunities for Bus Online and Oppein Home
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Oppein is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group and Bus Online 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 Bus Online Co are associated (or correlated) with Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Bus Online i.e., Bus Online and Oppein Home go up and down completely randomly.
Pair Corralation between Bus Online and Oppein Home
Assuming the 90 days trading horizon Bus Online is expected to generate 2.25 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Bus Online Co is 1.37 times less risky than Oppein Home. It trades about 0.18 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 4,080 in Oppein Home Group on September 12, 2024 and sell it today you would earn a total of 3,385 from holding Oppein Home Group or generate 82.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bus Online Co vs. Oppein Home Group
Performance |
Timeline |
Bus Online |
Oppein Home Group |
Bus Online and Oppein Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bus Online and Oppein Home
The main advantage of trading using opposite Bus Online and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.Bus Online vs. Gansu Jiu Steel | Bus Online vs. Shandong Mining Machinery | Bus Online vs. Aba Chemicals Corp | Bus Online vs. BlueFocus Communication Group |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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