Correlation Between Bangyan Technology and Linewell Software
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By analyzing existing cross correlation between Bangyan Technology Co and Linewell Software Co, you can compare the effects of market volatilities on Bangyan Technology and Linewell Software 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 Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangyan Technology and Linewell Software.
Diversification Opportunities for Bangyan Technology and Linewell Software
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bangyan and Linewell is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bangyan Technology Co and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software 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 Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Bangyan Technology i.e., Bangyan Technology and Linewell Software go up and down completely randomly.
Pair Corralation between Bangyan Technology and Linewell Software
Assuming the 90 days trading horizon Bangyan Technology is expected to generate 1.71 times less return on investment than Linewell Software. But when comparing it to its historical volatility, Bangyan Technology Co is 1.24 times less risky than Linewell Software. It trades about 0.09 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,108 in Linewell Software Co on September 1, 2024 and sell it today you would earn a total of 113.00 from holding Linewell Software Co or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangyan Technology Co vs. Linewell Software Co
Performance |
| Timeline |
| Bangyan Technology |
| Linewell Software |
Bangyan Technology and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangyan Technology and Linewell Software
The main advantage of trading using opposite Bangyan Technology and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangyan Technology position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software's long position.| Bangyan Technology vs. Industrial and Commercial | Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. Agricultural Bank of | Bangyan Technology vs. China Mobile Limited |
| Linewell Software vs. Ming Yang Smart | Linewell Software vs. 159681 | Linewell Software vs. 159005 | Linewell Software vs. Loctek Ergonomic Technology |
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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