Correlation Between Hua Xia and Bangyan Technology
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By analyzing existing cross correlation between Hua Xia Bank and Bangyan Technology Co, you can compare the effects of market volatilities on Hua Xia 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 Hua Xia with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Bangyan Technology.
Diversification Opportunities for Hua Xia and Bangyan Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hua and Bangyan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Hua Xia 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 Hua Xia Bank 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 Hua Xia i.e., Hua Xia and Bangyan Technology go up and down completely randomly.
Pair Corralation between Hua Xia and Bangyan Technology
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.46 times more return on investment than Bangyan Technology. However, Hua Xia Bank is 2.17 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 618.00 in Hua Xia Bank on November 3, 2024 and sell it today you would earn a total of 142.00 from holding Hua Xia Bank or generate 22.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Bangyan Technology Co
Performance |
| Timeline |
| Hua Xia Bank |
| Bangyan Technology |
Hua Xia and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Bangyan Technology
The main advantage of trading using opposite Hua Xia and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia 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.| Hua Xia vs. Beijing Enlight Media | Hua Xia vs. Zbit Semiconductor A | Hua Xia vs. Duzhe Publishing Media | Hua Xia vs. Hengdian Entertainment Co |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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