Correlation Between Jinhui Liquor and Bangyan Technology
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By analyzing existing cross correlation between Jinhui Liquor Co and Bangyan Technology Co, you can compare the effects of market volatilities on Jinhui Liquor 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 Jinhui Liquor with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Bangyan Technology.
Diversification Opportunities for Jinhui Liquor and Bangyan Technology
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jinhui and Bangyan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Jinhui Liquor 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 Jinhui Liquor Co 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 Jinhui Liquor i.e., Jinhui Liquor and Bangyan Technology go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Bangyan Technology
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Bangyan Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.39 times less risky than Bangyan Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Bangyan Technology Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,156 in Bangyan Technology Co on October 25, 2024 and sell it today you would lose (483.00) from holding Bangyan Technology Co or give up 22.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Bangyan Technology Co
Performance |
| Timeline |
| Jinhui Liquor |
| Bangyan Technology |
Jinhui Liquor and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Bangyan Technology
The main advantage of trading using opposite Jinhui Liquor and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor 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.| Jinhui Liquor vs. Agricultural Bank of | Jinhui Liquor vs. Postal Savings Bank | Jinhui Liquor vs. Bank of Communications | Jinhui Liquor vs. China Merchants Bank |
| Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. NAURA Technology Group | Bangyan Technology vs. APT Medical | Bangyan Technology vs. BYD Co Ltd |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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