Correlation Between Bengang Steel and Yunnan Jianzhijia
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By analyzing existing cross correlation between Bengang Steel Plates and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Bengang Steel and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bengang Steel and Yunnan Jianzhijia.
Diversification Opportunities for Bengang Steel and Yunnan Jianzhijia
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bengang and Yunnan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bengang Steel Plates and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Bengang Steel i.e., Bengang Steel and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Bengang Steel and Yunnan Jianzhijia
Assuming the 90 days trading horizon Bengang Steel Plates is expected to generate 0.81 times more return on investment than Yunnan Jianzhijia. However, Bengang Steel Plates is 1.24 times less risky than Yunnan Jianzhijia. It trades about 0.1 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about -0.19 per unit of risk. If you would invest 352.00 in Bengang Steel Plates on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Bengang Steel Plates or generate 4.26% 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. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| Bengang Steel Plates |
| Yunnan Jianzhijia |
Bengang Steel and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bengang Steel and Yunnan Jianzhijia
The main advantage of trading using opposite Bengang Steel and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bengang Steel position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia'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 |
| Yunnan Jianzhijia vs. Ming Yang Smart | Yunnan Jianzhijia vs. 159681 | Yunnan Jianzhijia vs. 159005 | Yunnan Jianzhijia 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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