Correlation Between Shandong Publishing and Bangyan Technology
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By analyzing existing cross correlation between Shandong Publishing Media and Bangyan Technology Co, you can compare the effects of market volatilities on Shandong Publishing 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 Shandong Publishing with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Bangyan Technology.
Diversification Opportunities for Shandong Publishing and Bangyan Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Bangyan is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Shandong Publishing 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 Shandong Publishing Media 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 Shandong Publishing i.e., Shandong Publishing and Bangyan Technology go up and down completely randomly.
Pair Corralation between Shandong Publishing and Bangyan Technology
Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the Bangyan Technology. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Publishing Media is 1.11 times less risky than Bangyan Technology. The stock trades about -0.09 of its potential returns per unit of risk. The Bangyan Technology Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Bangyan Technology Co on November 4, 2024 and sell it today you would earn a total of 182.00 from holding Bangyan Technology Co or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Bangyan Technology Co
Performance |
| Timeline |
| Shandong Publishing Media |
| Bangyan Technology |
Shandong Publishing and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Bangyan Technology
The main advantage of trading using opposite Shandong Publishing and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing 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.| Shandong Publishing vs. Huaxia Fund Management | Shandong Publishing vs. China Life Insurance | Shandong Publishing vs. Sanbo Hospital Management | Shandong Publishing vs. Innovative Medical Management |
| Bangyan Technology vs. GRG Banking Equipment | Bangyan Technology vs. Panda Financial Holding | Bangyan Technology vs. Vats Liquor Chain | Bangyan Technology vs. Simei Media 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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