Correlation Between Bangyan Technology and Jiangxi Copper
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By analyzing existing cross correlation between Bangyan Technology Co and Jiangxi Copper Co, you can compare the effects of market volatilities on Bangyan Technology and Jiangxi Copper 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 Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Jiangxi Copper.
Diversification Opportunities for Bangyan Technology and Jiangxi Copper
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Jiangxi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper 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 Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Bangyan Technology and Jiangxi Copper
Assuming the 90 days trading horizon Bangyan Technology Co is expected to under-perform the Jiangxi Copper. In addition to that, Bangyan Technology is 1.58 times more volatile than Jiangxi Copper Co. It trades about -0.02 of its total potential returns per unit of risk. Jiangxi Copper Co is currently generating about 0.03 per unit of volatility. If you would invest 1,711 in Jiangxi Copper Co on September 3, 2024 and sell it today you would earn a total of 394.00 from holding Jiangxi Copper Co or generate 23.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bangyan Technology Co vs. Jiangxi Copper Co
Performance |
| Timeline |
| Bangyan Technology |
| Jiangxi Copper |
Bangyan Technology and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Jiangxi Copper
The main advantage of trading using opposite Bangyan Technology and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper's long position.The idea behind Bangyan Technology Co and Jiangxi Copper Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jiangxi Copper vs. Bangyan Technology Co | Jiangxi Copper vs. Xiandai Investment Co | Jiangxi Copper vs. Chengdu Xingrong Investment | Jiangxi Copper vs. Luyin Investment Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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