Correlation Between Bengang Steel and Threes Company
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By analyzing existing cross correlation between Bengang Steel Plates and Threes Company Media, you can compare the effects of market volatilities on Bengang Steel and Threes Company 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 Threes Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bengang Steel and Threes Company.
Diversification Opportunities for Bengang Steel and Threes Company
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bengang and Threes is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bengang Steel Plates and Threes Company Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Threes Company 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 Threes Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Threes Company has no effect on the direction of Bengang Steel i.e., Bengang Steel and Threes Company go up and down completely randomly.
Pair Corralation between Bengang Steel and Threes Company
Assuming the 90 days trading horizon Bengang Steel Plates is expected to generate 0.59 times more return on investment than Threes Company. However, Bengang Steel Plates is 1.7 times less risky than Threes Company. It trades about 0.02 of its potential returns per unit of risk. Threes Company Media is currently generating about 0.0 per unit of risk. If you would invest 316.00 in Bengang Steel Plates on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Bengang Steel Plates or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bengang Steel Plates vs. Threes Company Media
Performance |
| Timeline |
| Bengang Steel Plates |
| Threes Company |
Bengang Steel and Threes Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bengang Steel and Threes Company
The main advantage of trading using opposite Bengang Steel and Threes Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bengang Steel position performs unexpectedly, Threes Company 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 Threes Company will offset losses from the drop in Threes Company'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 |
| Threes Company vs. Gansu Jiu Steel | Threes Company vs. Ming Yang Smart | Threes Company vs. Aba Chemicals Corp | Threes Company vs. Loctek Ergonomic Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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