Correlation Between Bangyan Technology and Masterwork Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bangyan Technology Co and Masterwork Machinery, you can compare the effects of market volatilities on Bangyan Technology and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Masterwork Machinery.
Diversification Opportunities for Bangyan Technology and Masterwork Machinery
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Masterwork is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Masterwork Machinery go up and down completely randomly.
Pair Corralation between Bangyan Technology and Masterwork Machinery
Assuming the 90 days trading horizon Bangyan Technology Co is expected to generate 0.97 times more return on investment than Masterwork Machinery. However, Bangyan Technology Co is 1.03 times less risky than Masterwork Machinery. It trades about 0.35 of its potential returns per unit of risk. Masterwork Machinery is currently generating about 0.2 per unit of risk. If you would invest 1,540 in Bangyan Technology Co on November 6, 2024 and sell it today you would earn a total of 242.00 from holding Bangyan Technology Co or generate 15.71% 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. Masterwork Machinery
Performance |
| Timeline |
| Bangyan Technology |
| Masterwork Machinery |
Bangyan Technology and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Masterwork Machinery
The main advantage of trading using opposite Bangyan Technology and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery's long position.| Bangyan Technology vs. Hunan Investment Group | Bangyan Technology vs. Shenzhen Cotran New | Bangyan Technology vs. Henan Shuanghui Investment | Bangyan Technology vs. Xiandai Investment 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |