Correlation Between Bengang Steel and Sinocat Environmental
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By analyzing existing cross correlation between Bengang Steel Plates and Sinocat Environmental Technology, you can compare the effects of market volatilities on Bengang Steel and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bengang Steel and Sinocat Environmental.
Diversification Opportunities for Bengang Steel and Sinocat Environmental
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bengang and Sinocat is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bengang Steel Plates and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Bengang Steel i.e., Bengang Steel and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Bengang Steel and Sinocat Environmental
Assuming the 90 days trading horizon Bengang Steel Plates is expected to generate 0.7 times more return on investment than Sinocat Environmental. However, Bengang Steel Plates is 1.43 times less risky than Sinocat Environmental. It trades about 0.01 of its potential returns per unit of risk. Sinocat Environmental Technology 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bengang Steel Plates vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Bengang Steel Plates |
| Sinocat Environmental |
Bengang Steel and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bengang Steel and Sinocat Environmental
The main advantage of trading using opposite Bengang Steel and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bengang Steel position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental'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 |
| Sinocat Environmental vs. Agricultural Bank of | Sinocat Environmental vs. Postal Savings Bank | Sinocat Environmental vs. Gansu Jiu Steel | Sinocat Environmental vs. Shandong Mining Machinery |
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 Stocks Directory module to find actively traded stocks across global markets.
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