Correlation Between Yoantion Industrial and Bangyan Technology
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By analyzing existing cross correlation between Yoantion Industrial IncLtd and Bangyan Technology Co, you can compare the effects of market volatilities on Yoantion Industrial 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 Yoantion Industrial with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yoantion Industrial and Bangyan Technology.
Diversification Opportunities for Yoantion Industrial and Bangyan Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yoantion and Bangyan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yoantion Industrial IncLtd and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Yoantion Industrial 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 Yoantion Industrial IncLtd 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 Yoantion Industrial i.e., Yoantion Industrial and Bangyan Technology go up and down completely randomly.
Pair Corralation between Yoantion Industrial and Bangyan Technology
Assuming the 90 days trading horizon Yoantion Industrial IncLtd is expected to generate 1.21 times more return on investment than Bangyan Technology. However, Yoantion Industrial is 1.21 times more volatile than Bangyan Technology Co. It trades about 0.02 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about -0.02 per unit of risk. If you would invest 2,165 in Yoantion Industrial IncLtd on September 3, 2024 and sell it today you would earn a total of 88.00 from holding Yoantion Industrial IncLtd or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Yoantion Industrial IncLtd vs. Bangyan Technology Co
Performance |
| Timeline |
| Yoantion Industrial |
| Bangyan Technology |
Yoantion Industrial and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yoantion Industrial and Bangyan Technology
The main advantage of trading using opposite Yoantion Industrial and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yoantion Industrial 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.| Yoantion Industrial vs. Touchstone International Medical | Yoantion Industrial vs. Cowealth Medical China | Yoantion Industrial vs. GKHT Medical Technology | Yoantion Industrial vs. Bangyan Technology Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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