Correlation Between Bengang Steel and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Bengang Steel Plates and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Bengang Steel and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bengang Steel and Shenzhen Zhongzhuang.
Diversification Opportunities for Bengang Steel and Shenzhen Zhongzhuang
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bengang and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bengang Steel Plates and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Bengang Steel i.e., Bengang Steel and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Bengang Steel and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Bengang Steel Plates is expected to under-perform the Shenzhen Zhongzhuang. But the stock apears to be less risky and, when comparing its historical volatility, Bengang Steel Plates is 1.39 times less risky than Shenzhen Zhongzhuang. The stock trades about -0.02 of its potential returns per unit of risk. The Shenzhen Zhongzhuang Construction is currently generating about 0.57 of returns per unit of risk over similar time horizon. If you would invest 272.00 in Shenzhen Zhongzhuang Construction on September 5, 2024 and sell it today you would earn a total of 129.00 from holding Shenzhen Zhongzhuang Construction or generate 47.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bengang Steel Plates vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Bengang Steel Plates |
| Shenzhen Zhongzhuang |
Bengang Steel and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bengang Steel and Shenzhen Zhongzhuang
The main advantage of trading using opposite Bengang Steel and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bengang Steel position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| Bengang Steel vs. Yunnan Jianzhijia Health Chain | Bengang Steel vs. De Rucci Healthy | Bengang Steel vs. Everjoy Health Group | Bengang Steel vs. Datang HuaYin Electric |
| Shenzhen Zhongzhuang vs. Central Plains Environment | Shenzhen Zhongzhuang vs. Bengang Steel Plates | Shenzhen Zhongzhuang vs. Ningbo Thermal Power | Shenzhen Zhongzhuang vs. Beijing SPC Environment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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