Correlation Between Bangyan Technology and Tianshui Huatian
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By analyzing existing cross correlation between Bangyan Technology Co and Tianshui Huatian Technology, you can compare the effects of market volatilities on Bangyan Technology and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Tianshui Huatian.
Diversification Opportunities for Bangyan Technology and Tianshui Huatian
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bangyan and Tianshui is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Bangyan Technology and Tianshui Huatian
Assuming the 90 days trading horizon Bangyan Technology Co is expected to generate 1.69 times more return on investment than Tianshui Huatian. However, Bangyan Technology is 1.69 times more volatile than Tianshui Huatian Technology. It trades about 0.12 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about 0.13 per unit of risk. If you would invest 1,681 in Bangyan Technology Co on November 3, 2024 and sell it today you would earn a total of 101.00 from holding Bangyan Technology Co or generate 6.01% 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. Tianshui Huatian Technology
Performance |
| Timeline |
| Bangyan Technology |
| Tianshui Huatian Tec |
Bangyan Technology and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Tianshui Huatian
The main advantage of trading using opposite Bangyan Technology and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| Bangyan Technology vs. Shaanxi Energy Investment | Bangyan Technology vs. Jiangsu GDK Biotechnology | Bangyan Technology vs. Shenzhen Topway Video | Bangyan Technology vs. Beijing Mainstreets Investment |
| Tianshui Huatian vs. Nexchip Semiconductor Corp | Tianshui Huatian vs. Jiangxi Naipu Mining | Tianshui Huatian vs. Southchip Semiconductor Technology | Tianshui Huatian vs. GRINM Semiconductor Materials |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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