Correlation Between Bingo Software and Smartgiant Technology
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By analyzing existing cross correlation between Bingo Software Co and Smartgiant Technology Co, you can compare the effects of market volatilities on Bingo Software and Smartgiant Technology 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 Bingo Software with a short position of Smartgiant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bingo Software and Smartgiant Technology.
Diversification Opportunities for Bingo Software and Smartgiant Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bingo and Smartgiant is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bingo Software Co and Smartgiant Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartgiant Technology and Bingo Software 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 Bingo Software Co are associated (or correlated) with Smartgiant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartgiant Technology has no effect on the direction of Bingo Software i.e., Bingo Software and Smartgiant Technology go up and down completely randomly.
Pair Corralation between Bingo Software and Smartgiant Technology
Assuming the 90 days trading horizon Bingo Software Co is expected to generate 1.24 times more return on investment than Smartgiant Technology. However, Bingo Software is 1.24 times more volatile than Smartgiant Technology Co. It trades about 0.18 of its potential returns per unit of risk. Smartgiant Technology Co is currently generating about 0.01 per unit of risk. If you would invest 1,475 in Bingo Software Co on October 14, 2024 and sell it today you would earn a total of 925.00 from holding Bingo Software Co or generate 62.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bingo Software Co vs. Smartgiant Technology Co
Performance |
| Timeline |
| Bingo Software |
| Smartgiant Technology |
Bingo Software and Smartgiant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bingo Software and Smartgiant Technology
The main advantage of trading using opposite Bingo Software and Smartgiant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bingo Software position performs unexpectedly, Smartgiant Technology 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 Smartgiant Technology will offset losses from the drop in Smartgiant Technology's long position.| Bingo Software vs. Great Sun Foods Co | Bingo Software vs. Xinjiang Tianrun Dairy | Bingo Software vs. Hangzhou Guotai Environmental | Bingo Software vs. Ping An Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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