Correlation Between Bangyan Technology and ZTE Corp
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By analyzing existing cross correlation between Bangyan Technology Co and ZTE Corp, you can compare the effects of market volatilities on Bangyan Technology and ZTE Corp 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 Bangyan Technology with a short position of ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and ZTE Corp.
Diversification Opportunities for Bangyan Technology and ZTE Corp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangyan and ZTE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp and Bangyan Technology 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 Bangyan Technology Co are associated (or correlated) with ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and ZTE Corp go up and down completely randomly.
Pair Corralation between Bangyan Technology and ZTE Corp
Assuming the 90 days trading horizon Bangyan Technology Co is expected to under-perform the ZTE Corp. But the stock apears to be less risky and, when comparing its historical volatility, Bangyan Technology Co is 1.61 times less risky than ZTE Corp. The stock trades about -0.09 of its potential returns per unit of risk. The ZTE Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,615 in ZTE Corp on October 24, 2024 and sell it today you would earn a total of 673.00 from holding ZTE Corp or generate 18.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bangyan Technology Co vs. ZTE Corp
Performance |
| Timeline |
| Bangyan Technology |
| ZTE Corp |
Bangyan Technology and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and ZTE Corp
The main advantage of trading using opposite Bangyan Technology and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| Bangyan Technology vs. Will Semiconductor Co | Bangyan Technology vs. Ingenic Semiconductor | Bangyan Technology vs. Nexchip Semiconductor Corp | Bangyan Technology vs. Weihai Honglin Electronic |
| ZTE Corp vs. China Mobile Limited | ZTE Corp vs. Panda Financial Holding | ZTE Corp vs. Xiamen Bank Co | ZTE Corp vs. China Everbright Bank |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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