Correlation Between Capital Income and Bangyan Technology
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By analyzing existing cross correlation between Capital Income Builder and Bangyan Technology Co, you can compare the effects of market volatilities on Capital Income 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 Capital Income with a short position of Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Income and Bangyan Technology.
Diversification Opportunities for Capital Income and Bangyan Technology
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Capital and Bangyan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology and Capital Income 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 Capital Income Builder 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 Capital Income i.e., Capital Income and Bangyan Technology go up and down completely randomly.
Pair Corralation between Capital Income and Bangyan Technology
Assuming the 90 days horizon Capital Income is expected to generate 4.7 times less return on investment than Bangyan Technology. But when comparing it to its historical volatility, Capital Income Builder is 6.56 times less risky than Bangyan Technology. It trades about 0.08 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 | Very Weak |
| Accuracy | 95.14% |
| Values | Daily Returns |
Capital Income Builder vs. Bangyan Technology Co
Performance |
| Timeline |
| Capital Income Builder |
| Bangyan Technology |
Capital Income and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Income and Bangyan Technology
The main advantage of trading using opposite Capital Income and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Income 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.| Capital Income vs. Dws Global Macro | Capital Income vs. Rbb Fund | Capital Income vs. Kinetics Global Fund | Capital Income vs. Ms Global Fixed |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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