Correlation Between Bangyan Technology and China Petroleum
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By analyzing existing cross correlation between Bangyan Technology Co and China Petroleum Chemical, you can compare the effects of market volatilities on Bangyan Technology and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and China Petroleum.
Diversification Opportunities for Bangyan Technology and China Petroleum
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bangyan and China is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and China Petroleum go up and down completely randomly.
Pair Corralation between Bangyan Technology and China Petroleum
Assuming the 90 days trading horizon Bangyan Technology Co is expected to generate 2.21 times more return on investment than China Petroleum. However, Bangyan Technology is 2.21 times more volatile than China Petroleum Chemical. It trades about -0.08 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.21 per unit of risk. If you would invest 1,784 in Bangyan Technology Co on October 22, 2024 and sell it today you would lose (87.00) from holding Bangyan Technology Co or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bangyan Technology Co vs. China Petroleum Chemical
Performance |
| Timeline |
| Bangyan Technology |
| China Petroleum Chemical |
Bangyan Technology and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and China Petroleum
The main advantage of trading using opposite Bangyan Technology and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Bangyan Technology vs. Henan Shuanghui Investment | Bangyan Technology vs. Agricultural Bank of | Bangyan Technology vs. Hua Xia Bank | Bangyan Technology vs. Panda Financial Holding |
| China Petroleum vs. Bangyan Technology Co | China Petroleum vs. Olympic Circuit Technology | China Petroleum vs. Guangdong Xiongsu Technology | China Petroleum vs. Lander Sports Development |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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