Correlation Between Bangyan Technology and Northern United
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By analyzing existing cross correlation between Bangyan Technology Co and Northern United Publishing, you can compare the effects of market volatilities on Bangyan Technology and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Northern United.
Diversification Opportunities for Bangyan Technology and Northern United
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangyan and Northern is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Northern United go up and down completely randomly.
Pair Corralation between Bangyan Technology and Northern United
Assuming the 90 days trading horizon Bangyan Technology Co is expected to under-perform the Northern United. In addition to that, Bangyan Technology is 1.03 times more volatile than Northern United Publishing. It trades about -0.01 of its total potential returns per unit of risk. Northern United Publishing is currently generating about 0.01 per unit of volatility. If you would invest 648.00 in Northern United Publishing on October 25, 2024 and sell it today you would lose (30.00) from holding Northern United Publishing or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangyan Technology Co vs. Northern United Publishing
Performance |
| Timeline |
| Bangyan Technology |
| Northern United Publ |
Bangyan Technology and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Northern United
The main advantage of trading using opposite Bangyan Technology and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. NAURA Technology Group | Bangyan Technology vs. APT Medical | Bangyan Technology vs. BYD Co Ltd |
| Northern United vs. Xiamen Jihong Package | Northern United vs. Great Sun Foods Co | Northern United vs. CGN Nuclear Technology | Northern United vs. Shanghai Ziyan Foods |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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