Correlation Between Jiaozuo Wanfang and Bangyan Technology
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Bangyan Technology Co, you can compare the effects of market volatilities on Jiaozuo Wanfang and Bangyan Technology 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 Jiaozuo Wanfang with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Bangyan Technology.
Diversification Opportunities for Jiaozuo Wanfang and Bangyan Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiaozuo and Bangyan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum are associated (or correlated) with Bangyan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangyan Technology has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Bangyan Technology go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Bangyan Technology
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to under-perform the Bangyan Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jiaozuo Wanfang Aluminum is 1.31 times less risky than Bangyan Technology. The stock trades about -0.23 of its potential returns per unit of risk. The Bangyan Technology Co is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,856 in Bangyan Technology Co on August 29, 2024 and sell it today you would lose (164.00) from holding Bangyan Technology Co or give up 8.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Bangyan Technology Co
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Bangyan Technology |
Jiaozuo Wanfang and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Bangyan Technology
The main advantage of trading using opposite Jiaozuo Wanfang and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Bangyan Technology 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 Bangyan Technology will offset losses from the drop in Bangyan Technology's long position.| Jiaozuo Wanfang vs. Wanhua Chemical Group | Jiaozuo Wanfang vs. Shandong Gold Mining | Jiaozuo Wanfang vs. Rongsheng Petrochemical Co | Jiaozuo Wanfang vs. Inner Mongolia BaoTou |
| Bangyan Technology vs. Shantou Wanshun Package | Bangyan Technology vs. Jilin Jlu Communication | Bangyan Technology vs. Youyou Foods Co | Bangyan Technology vs. Xiangyang Automobile Bearing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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