Correlation Between Bengang Steel and Sino Platinum
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By analyzing existing cross correlation between Bengang Steel Plates and Sino Platinum Metals Co, you can compare the effects of market volatilities on Bengang Steel and Sino Platinum 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 Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bengang Steel and Sino Platinum.
Diversification Opportunities for Bengang Steel and Sino Platinum
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bengang and Sino is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bengang Steel Plates and Sino Platinum Metals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Platinum Metals 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 Sino Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Platinum Metals has no effect on the direction of Bengang Steel i.e., Bengang Steel and Sino Platinum go up and down completely randomly.
Pair Corralation between Bengang Steel and Sino Platinum
Assuming the 90 days trading horizon Bengang Steel Plates is expected to generate 1.3 times more return on investment than Sino Platinum. However, Bengang Steel is 1.3 times more volatile than Sino Platinum Metals Co. It trades about 0.01 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about -0.01 per unit of risk. If you would invest 297.00 in Bengang Steel Plates on October 7, 2024 and sell it today you would earn a total of 9.00 from holding Bengang Steel Plates or generate 3.03% 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. Sino Platinum Metals Co
Performance |
| Timeline |
| Bengang Steel Plates |
| Sino Platinum Metals |
Bengang Steel and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bengang Steel and Sino Platinum
The main advantage of trading using opposite Bengang Steel and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bengang Steel position performs unexpectedly, Sino Platinum 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 Sino Platinum will offset losses from the drop in Sino Platinum's long position.| Bengang Steel vs. Zijin Mining Group | Bengang Steel vs. Wanhua Chemical Group | Bengang Steel vs. Baoshan Iron Steel | Bengang Steel vs. Rongsheng Petrochemical Co |
| Sino Platinum vs. Kangxin New Materials | Sino Platinum vs. Guangzhou Zhujiang Brewery | Sino Platinum vs. Western Metal Materials | Sino Platinum vs. Jiangsu Financial Leasing |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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