Correlation Between Bangyan Technology and Ningbo Tech
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By analyzing existing cross correlation between Bangyan Technology Co and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Bangyan Technology and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Ningbo Tech.
Diversification Opportunities for Bangyan Technology and Ningbo Tech
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bangyan and Ningbo is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Ningbo Tech go up and down completely randomly.
Pair Corralation between Bangyan Technology and Ningbo Tech
Assuming the 90 days trading horizon Bangyan Technology Co is expected to generate 1.99 times more return on investment than Ningbo Tech. However, Bangyan Technology is 1.99 times more volatile than Ningbo Tech Bank Co. It trades about 0.05 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.1 per unit of risk. If you would invest 1,692 in Bangyan Technology Co on October 30, 2024 and sell it today you would earn a total of 90.00 from holding Bangyan Technology Co or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangyan Technology Co vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Bangyan Technology |
| Ningbo Tech Bank |
Bangyan Technology and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Ningbo Tech
The main advantage of trading using opposite Bangyan Technology and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| Bangyan Technology vs. Bus Online Co | Bangyan Technology vs. Holitech Technology Co | Bangyan Technology vs. Gome Telecom Equipment | Bangyan Technology vs. Cultural Investment Holdings |
| Ningbo Tech vs. Shanghai CEO Environmental | Ningbo Tech vs. Jinhe Biotechnology Co | Ningbo Tech vs. Kuang Chi Technologies | Ningbo Tech vs. Sharetronic Data Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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