Correlation Between Bangyan Technology and Hangzhou Zhongya
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By analyzing existing cross correlation between Bangyan Technology Co and Hangzhou Zhongya Machinery, you can compare the effects of market volatilities on Bangyan Technology and Hangzhou Zhongya 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 Bangyan Technology with a short position of Hangzhou Zhongya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Hangzhou Zhongya.
Diversification Opportunities for Bangyan Technology and Hangzhou Zhongya
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Hangzhou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Hangzhou Zhongya Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Zhongya Mac and Bangyan Technology 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 Bangyan Technology Co are associated (or correlated) with Hangzhou Zhongya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Zhongya Mac has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Hangzhou Zhongya go up and down completely randomly.
Pair Corralation between Bangyan Technology and Hangzhou Zhongya
Assuming the 90 days trading horizon Bangyan Technology Co is expected to under-perform the Hangzhou Zhongya. But the stock apears to be less risky and, when comparing its historical volatility, Bangyan Technology Co is 1.05 times less risky than Hangzhou Zhongya. The stock trades about -0.13 of its potential returns per unit of risk. The Hangzhou Zhongya Machinery is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 713.00 in Hangzhou Zhongya Machinery on October 22, 2024 and sell it today you would lose (33.00) from holding Hangzhou Zhongya Machinery or give up 4.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Bangyan Technology Co vs. Hangzhou Zhongya Machinery
Performance |
Timeline |
Bangyan Technology |
Hangzhou Zhongya Mac |
Bangyan Technology and Hangzhou Zhongya Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bangyan Technology and Hangzhou Zhongya
The main advantage of trading using opposite Bangyan Technology and Hangzhou Zhongya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Hangzhou Zhongya 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 Hangzhou Zhongya will offset losses from the drop in Hangzhou Zhongya's long position.Bangyan Technology vs. Henan Shuanghui Investment | Bangyan Technology vs. Agricultural Bank of | Bangyan Technology vs. Hua Xia Bank | Bangyan Technology vs. Panda Financial Holding |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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