Correlation Between Northern United and Bangyan Technology
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By analyzing existing cross correlation between Northern United Publishing and Bangyan Technology Co, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Bangyan Technology.
Diversification Opportunities for Northern United and Bangyan Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northern and Bangyan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Bangyan Technology go up and down completely randomly.
Pair Corralation between Northern United and Bangyan Technology
Assuming the 90 days trading horizon Northern United is expected to generate 1.27 times less return on investment than Bangyan Technology. But when comparing it to its historical volatility, Northern United Publishing is 1.45 times less risky than Bangyan Technology. It trades about 0.27 of its potential returns per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Bangyan Technology Co
Performance |
| Timeline |
| Northern United Publ |
| Bangyan Technology |
Northern United and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Bangyan Technology
The main advantage of trading using opposite Northern United and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. V V Food | Northern United vs. Yan Tai Shuang | Northern United vs. Citic Offshore Helicopter | Northern United vs. Gan Yuan Foods |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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