Correlation Between Henan Shuanghui and Bangyan Technology
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By analyzing existing cross correlation between Henan Shuanghui Investment and Bangyan Technology Co, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Bangyan Technology.
Diversification Opportunities for Henan Shuanghui and Bangyan Technology
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Henan and Bangyan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Bangyan Technology go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Bangyan Technology
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.4 times more return on investment than Bangyan Technology. However, Henan Shuanghui Investment is 2.49 times less risky than Bangyan Technology. It trades about 0.1 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about 0.04 per unit of risk. If you would invest 2,198 in Henan Shuanghui Investment on November 3, 2024 and sell it today you would earn a total of 438.00 from holding Henan Shuanghui Investment or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Bangyan Technology Co
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Bangyan Technology |
Henan Shuanghui and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Bangyan Technology
The main advantage of trading using opposite Henan Shuanghui and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Central Plains Environment | Henan Shuanghui vs. Yuanjie Semiconductor Technology | Henan Shuanghui vs. Nexchip Semiconductor Corp | Henan Shuanghui vs. StarPower Semiconductor |
| Bangyan Technology vs. Industrial and Commercial | Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. Agricultural Bank of | Bangyan Technology 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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