Correlation Between Bangyan Technology and Holitech Technology
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By analyzing existing cross correlation between Bangyan Technology Co and Holitech Technology Co, you can compare the effects of market volatilities on Bangyan Technology and Holitech 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 Bangyan Technology with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Holitech Technology.
Diversification Opportunities for Bangyan Technology and Holitech Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Holitech is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology 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 Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Holitech Technology go up and down completely randomly.
Pair Corralation between Bangyan Technology and Holitech Technology
Assuming the 90 days trading horizon Bangyan Technology is expected to generate 3.69 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, Bangyan Technology Co is 1.28 times less risky than Holitech Technology. It trades about 0.09 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Holitech Technology Co on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Holitech Technology Co or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangyan Technology Co vs. Holitech Technology Co
Performance |
| Timeline |
| Bangyan Technology |
| Holitech Technology |
Bangyan Technology and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Holitech Technology
The main advantage of trading using opposite Bangyan Technology and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Holitech 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.| Bangyan Technology vs. Industrial and Commercial | Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. Agricultural Bank of | Bangyan Technology vs. China Mobile Limited |
| Holitech Technology vs. Cultural Investment Holdings | Holitech Technology vs. Gome Telecom Equipment | Holitech Technology vs. Bus Online Co | Holitech Technology vs. Zotye Automobile 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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