Correlation Between Bangyan Technology and Shantou Wanshun
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By analyzing existing cross correlation between Bangyan Technology Co and Shantou Wanshun Package, you can compare the effects of market volatilities on Bangyan Technology and Shantou Wanshun 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 Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Shantou Wanshun.
Diversification Opportunities for Bangyan Technology and Shantou Wanshun
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bangyan and Shantou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package 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 Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Bangyan Technology and Shantou Wanshun
Assuming the 90 days trading horizon Bangyan Technology Co is expected to generate 1.01 times more return on investment than Shantou Wanshun. However, Bangyan Technology is 1.01 times more volatile than Shantou Wanshun Package. It trades about 0.09 of its potential returns per unit of risk. Shantou Wanshun Package is currently generating about -0.07 per unit of risk. If you would invest 1,600 in Bangyan Technology Co on September 1, 2024 and sell it today you would earn a total of 92.00 from holding Bangyan Technology Co or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangyan Technology Co vs. Shantou Wanshun Package
Performance |
| Timeline |
| Bangyan Technology |
| Shantou Wanshun Package |
Bangyan Technology and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Shantou Wanshun
The main advantage of trading using opposite Bangyan Technology and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun'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 |
| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Wanhua Chemical Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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