Correlation Between Bangyan Technology and Anhui Fuhuang
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By analyzing existing cross correlation between Bangyan Technology Co and Anhui Fuhuang Steel, you can compare the effects of market volatilities on Bangyan Technology and Anhui Fuhuang 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 Anhui Fuhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Anhui Fuhuang.
Diversification Opportunities for Bangyan Technology and Anhui Fuhuang
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Anhui is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Anhui Fuhuang Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Fuhuang Steel 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 Anhui Fuhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Fuhuang Steel has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Anhui Fuhuang go up and down completely randomly.
Pair Corralation between Bangyan Technology and Anhui Fuhuang
Assuming the 90 days trading horizon Bangyan Technology Co is expected to generate 0.69 times more return on investment than Anhui Fuhuang. However, Bangyan Technology Co is 1.44 times less risky than Anhui Fuhuang. It trades about 0.08 of its potential returns per unit of risk. Anhui Fuhuang Steel is currently generating about -0.19 per unit of risk. If you would invest 1,733 in Bangyan Technology Co on October 29, 2024 and sell it today you would earn a total of 67.00 from holding Bangyan Technology Co or generate 3.87% 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. Anhui Fuhuang Steel
Performance |
| Timeline |
| Bangyan Technology |
| Anhui Fuhuang Steel |
Bangyan Technology and Anhui Fuhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Anhui Fuhuang
The main advantage of trading using opposite Bangyan Technology and Anhui Fuhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Anhui Fuhuang 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 Anhui Fuhuang will offset losses from the drop in Anhui Fuhuang'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 |
| Anhui Fuhuang vs. Zijin Mining Group | Anhui Fuhuang vs. Wanhua Chemical Group | Anhui Fuhuang vs. Baoshan Iron Steel | Anhui Fuhuang vs. Shandong Gold Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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