Correlation Between Bangyan Technology and Zhejiang Yayi
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By analyzing existing cross correlation between Bangyan Technology Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Bangyan Technology and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Zhejiang Yayi.
Diversification Opportunities for Bangyan Technology and Zhejiang Yayi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bangyan and Zhejiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Bangyan Technology and Zhejiang Yayi
Assuming the 90 days trading horizon Bangyan Technology is expected to generate 4.03 times less return on investment than Zhejiang Yayi. But when comparing it to its historical volatility, Bangyan Technology Co is 1.12 times less risky than Zhejiang Yayi. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,689 in Zhejiang Yayi Metal on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Zhejiang Yayi Metal or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangyan Technology Co vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Bangyan Technology |
| Zhejiang Yayi Metal |
Bangyan Technology and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Zhejiang Yayi
The main advantage of trading using opposite Bangyan Technology and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Bangyan Technology vs. Zhejiang Yayi Metal | Bangyan Technology vs. Tongling Nonferrous Metals | Bangyan Technology vs. Chongqing Shunbo Aluminum | Bangyan Technology vs. Western Metal Materials |
| Zhejiang Yayi vs. Lutian Machinery Co | Zhejiang Yayi vs. China Longyuan Power | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. Bank of China |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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