Correlation Between Bangyan Technology and Xiangyang Automobile
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By analyzing existing cross correlation between Bangyan Technology Co and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Bangyan Technology and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Xiangyang Automobile.
Diversification Opportunities for Bangyan Technology and Xiangyang Automobile
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Xiangyang is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Bangyan Technology and Xiangyang Automobile
Assuming the 90 days trading horizon Bangyan Technology Co is expected to under-perform the Xiangyang Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Bangyan Technology Co is 1.17 times less risky than Xiangyang Automobile. The stock trades about -0.02 of its potential returns per unit of risk. The Xiangyang Automobile Bearing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 671.00 in Xiangyang Automobile Bearing on October 12, 2024 and sell it today you would lose (93.00) from holding Xiangyang Automobile Bearing or give up 13.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangyan Technology Co vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Bangyan Technology |
| Xiangyang Automobile |
Bangyan Technology and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Xiangyang Automobile
The main advantage of trading using opposite Bangyan Technology and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Bangyan Technology vs. Tongyu Communication | Bangyan Technology vs. Songz Automobile Air | Bangyan Technology vs. Haima Automobile Group | Bangyan Technology vs. Guangdong Liantai Environmental |
| Xiangyang Automobile vs. Eastroc Beverage Group | Xiangyang Automobile vs. Tianjin Ruixin Technology | Xiangyang Automobile vs. Bangyan Technology Co | Xiangyang Automobile vs. HaiXin Foods 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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