Correlation Between Bangyan Technology and Digiwin Software
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By analyzing existing cross correlation between Bangyan Technology Co and Digiwin Software Co, you can compare the effects of market volatilities on Bangyan Technology and Digiwin Software 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 Digiwin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Digiwin Software.
Diversification Opportunities for Bangyan Technology and Digiwin Software
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Digiwin is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Digiwin Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digiwin Software 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 Digiwin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digiwin Software has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Digiwin Software go up and down completely randomly.
Pair Corralation between Bangyan Technology and Digiwin Software
Assuming the 90 days trading horizon Bangyan Technology is expected to generate 4.77 times less return on investment than Digiwin Software. But when comparing it to its historical volatility, Bangyan Technology Co is 1.91 times less risky than Digiwin Software. It trades about 0.12 of its potential returns per unit of risk. Digiwin Software Co is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,472 in Digiwin Software Co on November 3, 2024 and sell it today you would earn a total of 820.00 from holding Digiwin Software Co or generate 33.17% 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. Digiwin Software Co
Performance |
| Timeline |
| Bangyan Technology |
| Digiwin Software |
Bangyan Technology and Digiwin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Digiwin Software
The main advantage of trading using opposite Bangyan Technology and Digiwin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Digiwin Software 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 Digiwin Software will offset losses from the drop in Digiwin Software's long position.| Bangyan Technology vs. Shaanxi Energy Investment | Bangyan Technology vs. Jiangsu GDK Biotechnology | Bangyan Technology vs. Shenzhen Topway Video | Bangyan Technology vs. Beijing Mainstreets Investment |
| Digiwin Software vs. Harbin Hatou Investment | Digiwin Software vs. Iat Automobile Technology | Digiwin Software vs. Montage Technology Co | Digiwin Software vs. Henan Shuanghui Investment |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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