Correlation Between Bengang Steel and Xiwang Foodstuffs
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By analyzing existing cross correlation between Bengang Steel Plates and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Bengang Steel and Xiwang Foodstuffs 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 Bengang Steel with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bengang Steel and Xiwang Foodstuffs.
Diversification Opportunities for Bengang Steel and Xiwang Foodstuffs
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bengang and Xiwang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bengang Steel Plates and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Bengang Steel 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 Bengang Steel Plates are associated (or correlated) with Xiwang Foodstuffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Foodstuffs has no effect on the direction of Bengang Steel i.e., Bengang Steel and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Bengang Steel and Xiwang Foodstuffs
Assuming the 90 days trading horizon Bengang Steel is expected to generate 1.57 times less return on investment than Xiwang Foodstuffs. But when comparing it to its historical volatility, Bengang Steel Plates is 1.25 times less risky than Xiwang Foodstuffs. It trades about 0.19 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 228.00 in Xiwang Foodstuffs Co on September 2, 2024 and sell it today you would earn a total of 187.00 from holding Xiwang Foodstuffs Co or generate 82.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bengang Steel Plates vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Bengang Steel Plates |
| Xiwang Foodstuffs |
Bengang Steel and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bengang Steel and Xiwang Foodstuffs
The main advantage of trading using opposite Bengang Steel and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bengang Steel position performs unexpectedly, Xiwang Foodstuffs 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 Xiwang Foodstuffs will offset losses from the drop in Xiwang Foodstuffs' long position.| Bengang Steel vs. Heren Health Co | Bengang Steel vs. Impulse Qingdao Health | Bengang Steel vs. Railway Signal Communication | Bengang Steel vs. Lotus Health Group |
| Xiwang Foodstuffs vs. Penyao Environmental Protection | Xiwang Foodstuffs vs. Anhui Fuhuang Steel | Xiwang Foodstuffs vs. Bengang Steel Plates | Xiwang Foodstuffs vs. Shenzhen MYS Environmental |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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