Correlation Between China Securities and Bengang Steel
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By analyzing existing cross correlation between China Securities 800 and Bengang Steel Plates, you can compare the effects of market volatilities on China Securities and Bengang Steel 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 China Securities with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Bengang Steel.
Diversification Opportunities for China Securities and Bengang Steel
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Bengang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Bengang Steel Plates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bengang Steel Plates and China Securities 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 China Securities 800 are associated (or correlated) with Bengang Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bengang Steel Plates has no effect on the direction of China Securities i.e., China Securities and Bengang Steel go up and down completely randomly.
Pair Corralation between China Securities and Bengang Steel
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.75 times more return on investment than Bengang Steel. However, China Securities 800 is 1.34 times less risky than Bengang Steel. It trades about 0.01 of its potential returns per unit of risk. Bengang Steel Plates is currently generating about -0.18 per unit of risk. If you would invest 422,415 in China Securities 800 on September 1, 2024 and sell it today you would earn a total of 1,121 from holding China Securities 800 or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Bengang Steel Plates
Performance |
| Timeline |
China Securities and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Bengang Steel Plates
Pair trading matchups for Bengang Steel
Pair Trading with China Securities and Bengang Steel
The main advantage of trading using opposite China Securities and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Bengang Steel 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 Bengang Steel will offset losses from the drop in Bengang Steel's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Bengang Steel vs. Gome Telecom Equipment | Bengang Steel vs. Shenzhen Kexin Communication | Bengang Steel vs. Wuhan Yangtze Communication | Bengang Steel vs. Sportsoul Co Ltd |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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