Correlation Between Bengang Steel and Xilinmen Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bengang Steel Plates and Xilinmen Furniture Co, you can compare the effects of market volatilities on Bengang Steel and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bengang Steel and Xilinmen Furniture.
Diversification Opportunities for Bengang Steel and Xilinmen Furniture
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bengang and Xilinmen is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Bengang Steel Plates and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Bengang Steel i.e., Bengang Steel and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Bengang Steel and Xilinmen Furniture
Assuming the 90 days trading horizon Bengang Steel Plates is expected to under-perform the Xilinmen Furniture. In addition to that, Bengang Steel is 1.04 times more volatile than Xilinmen Furniture Co. It trades about -0.01 of its total potential returns per unit of risk. Xilinmen Furniture Co is currently generating about 0.0 per unit of volatility. If you would invest 1,936 in Xilinmen Furniture Co on September 3, 2024 and sell it today you would lose (41.00) from holding Xilinmen Furniture Co or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bengang Steel Plates vs. Xilinmen Furniture Co
Performance |
| Timeline |
| Bengang Steel Plates |
| Xilinmen Furniture |
Bengang Steel and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bengang Steel and Xilinmen Furniture
The main advantage of trading using opposite Bengang Steel and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bengang Steel position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Bengang Steel vs. Threes Company Media | Bengang Steel vs. Shuhua Sports Co | Bengang Steel vs. Inly Media Co | Bengang Steel vs. Beijing Bashi Media |
| Xilinmen Furniture vs. Tongxing Environmental Protection | Xilinmen Furniture vs. Ningbo Ligong Online | Xilinmen Furniture vs. Guangdong Advertising Co | Xilinmen Furniture 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |