Correlation Between Bangyan Technology and Tianjin Ruixin
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By analyzing existing cross correlation between Bangyan Technology Co and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Bangyan Technology and Tianjin Ruixin 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 Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Tianjin Ruixin.
Diversification Opportunities for Bangyan Technology and Tianjin Ruixin
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Tianjin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology 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 Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Bangyan Technology and Tianjin Ruixin
Assuming the 90 days trading horizon Bangyan Technology Co is expected to generate 1.02 times more return on investment than Tianjin Ruixin. However, Bangyan Technology is 1.02 times more volatile than Tianjin Ruixin Technology. It trades about 0.23 of its potential returns per unit of risk. Tianjin Ruixin Technology is currently generating about 0.0 per unit of risk. If you would invest 1,600 in Bangyan Technology Co on November 4, 2024 and sell it today you would earn a total of 182.00 from holding Bangyan Technology Co or generate 11.38% 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. Tianjin Ruixin Technology
Performance |
| Timeline |
| Bangyan Technology |
| Tianjin Ruixin Technology |
Bangyan Technology and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Tianjin Ruixin
The main advantage of trading using opposite Bangyan Technology and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Tianjin Ruixin 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 Tianjin Ruixin will offset losses from the drop in Tianjin Ruixin's long position.| Bangyan Technology vs. GRG Banking Equipment | Bangyan Technology vs. Panda Financial Holding | Bangyan Technology vs. Vats Liquor Chain | Bangyan Technology vs. Simei Media Co |
| Tianjin Ruixin vs. Hunan Mendale Hometextile | Tianjin Ruixin vs. Queclink Wireless Solutions | Tianjin Ruixin vs. Nanjing OLO Home | Tianjin Ruixin vs. Jiangsu Yueda 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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