Correlation Between Bangyan Technology and Beijing Kaiwen
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By analyzing existing cross correlation between Bangyan Technology Co and Beijing Kaiwen Education, you can compare the effects of market volatilities on Bangyan Technology and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Beijing Kaiwen.
Diversification Opportunities for Bangyan Technology and Beijing Kaiwen
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Bangyan Technology and Beijing Kaiwen
Assuming the 90 days trading horizon Bangyan Technology Co is expected to generate 1.14 times more return on investment than Beijing Kaiwen. However, Bangyan Technology is 1.14 times more volatile than Beijing Kaiwen Education. It trades about 0.01 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.06 per unit of risk. If you would invest 1,692 in Bangyan Technology Co on October 25, 2024 and sell it today you would lose (19.00) from holding Bangyan Technology Co or give up 1.12% 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. Beijing Kaiwen Education
Performance |
| Timeline |
| Bangyan Technology |
| Beijing Kaiwen Education |
Bangyan Technology and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Beijing Kaiwen
The main advantage of trading using opposite Bangyan Technology and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. NAURA Technology Group | Bangyan Technology vs. APT Medical | Bangyan Technology vs. BYD Co Ltd |
| Beijing Kaiwen vs. Kweichow Moutai Co | Beijing Kaiwen vs. Contemporary Amperex Technology | Beijing Kaiwen vs. Beijing Roborock Technology | Beijing Kaiwen vs. BYD Co Ltd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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