Correlation Between Ingenic Semiconductor and Bangyan Technology
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By analyzing existing cross correlation between Ingenic Semiconductor and Bangyan Technology Co, you can compare the effects of market volatilities on Ingenic Semiconductor 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 Ingenic Semiconductor with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and Bangyan Technology.
Diversification Opportunities for Ingenic Semiconductor and Bangyan Technology
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ingenic and Bangyan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Ingenic Semiconductor 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 Ingenic Semiconductor 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 Ingenic Semiconductor i.e., Ingenic Semiconductor and Bangyan Technology go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and Bangyan Technology
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to generate 11.7 times less return on investment than Bangyan Technology. But when comparing it to its historical volatility, Ingenic Semiconductor is 1.3 times less risky than Bangyan Technology. It trades about 0.01 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,681 in Bangyan Technology Co on November 3, 2024 and sell it today you would earn a total of 101.00 from holding Bangyan Technology Co or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingenic Semiconductor vs. Bangyan Technology Co
Performance |
| Timeline |
| Ingenic Semiconductor |
| Bangyan Technology |
Ingenic Semiconductor and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and Bangyan Technology
The main advantage of trading using opposite Ingenic Semiconductor and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor 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.The idea behind Ingenic Semiconductor and Bangyan Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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