Correlation Between New Perspective and Bangyan Technology
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By analyzing existing cross correlation between New Perspective Fund and Bangyan Technology Co, you can compare the effects of market volatilities on New Perspective and Bangyan 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 New Perspective with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Bangyan Technology.
Diversification Opportunities for New Perspective and Bangyan Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Bangyan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and New Perspective 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 New Perspective Fund are associated (or correlated) with Bangyan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangyan Technology has no effect on the direction of New Perspective i.e., New Perspective and Bangyan Technology go up and down completely randomly.
Pair Corralation between New Perspective and Bangyan Technology
Assuming the 90 days horizon New Perspective is expected to generate 3.92 times less return on investment than Bangyan Technology. But when comparing it to its historical volatility, New Perspective Fund is 3.97 times less risky than Bangyan Technology. It trades about 0.06 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,248 in Bangyan Technology Co on November 3, 2024 and sell it today you would earn a total of 534.00 from holding Bangyan Technology Co or generate 42.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.14% |
| Values | Daily Returns |
New Perspective Fund vs. Bangyan Technology Co
Performance |
| Timeline |
| New Perspective |
| Bangyan Technology |
New Perspective and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Bangyan Technology
The main advantage of trading using opposite New Perspective and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, Bangyan 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 Bangyan Technology will offset losses from the drop in Bangyan Technology's long position.| New Perspective vs. Growth Fund Of | New Perspective vs. American Funds Fundamental | New Perspective vs. Investment Of America | New Perspective vs. Smallcap World Fund |
| Bangyan Technology vs. Shaanxi Energy Investment | Bangyan Technology vs. Jiangsu GDK Biotechnology | Bangyan Technology vs. Shenzhen Topway Video | Bangyan Technology vs. Beijing Mainstreets Investment |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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