Correlation Between Bengang Steel and Sany Heavy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bengang Steel Plates and Sany Heavy Industry, you can compare the effects of market volatilities on Bengang Steel and Sany Heavy 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 Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bengang Steel and Sany Heavy.
Diversification Opportunities for Bengang Steel and Sany Heavy
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bengang and Sany is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bengang Steel Plates and Sany Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Industry 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Industry has no effect on the direction of Bengang Steel i.e., Bengang Steel and Sany Heavy go up and down completely randomly.
Pair Corralation between Bengang Steel and Sany Heavy
Assuming the 90 days trading horizon Bengang Steel Plates is expected to generate 2.03 times more return on investment than Sany Heavy. However, Bengang Steel is 2.03 times more volatile than Sany Heavy Industry. It trades about 0.08 of its potential returns per unit of risk. Sany Heavy Industry is currently generating about -0.15 per unit of risk. If you would invest 337.00 in Bengang Steel Plates on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Bengang Steel Plates or generate 8.9% 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. Sany Heavy Industry
Performance |
| Timeline |
| Bengang Steel Plates |
| Sany Heavy Industry |
Bengang Steel and Sany Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bengang Steel and Sany Heavy
The main advantage of trading using opposite Bengang Steel and Sany Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bengang Steel position performs unexpectedly, Sany Heavy 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 Sany Heavy will offset losses from the drop in Sany Heavy's long position.| Bengang Steel vs. Hangzhou Coco Healthcare | Bengang Steel vs. Guangdong Qunxing Toys | Bengang Steel vs. Healthcare Co | Bengang Steel vs. XinJiang GuoTong Pipeline |
| Sany Heavy vs. Beijing Sanyuan Foods | Sany Heavy vs. Jiangxi JDL Environmental | Sany Heavy vs. Sinocat Environmental Technology | Sany Heavy vs. Bengang Steel Plates |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |