Correlation Between Beijing SPC and Bengang Steel
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By analyzing existing cross correlation between Beijing SPC Environment and Bengang Steel Plates, you can compare the effects of market volatilities on Beijing SPC 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 Beijing SPC with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Bengang Steel.
Diversification Opportunities for Beijing SPC and Bengang Steel
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Bengang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment 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 Beijing SPC 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 Beijing SPC Environment 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 Beijing SPC i.e., Beijing SPC and Bengang Steel go up and down completely randomly.
Pair Corralation between Beijing SPC and Bengang Steel
Assuming the 90 days trading horizon Beijing SPC Environment is expected to under-perform the Bengang Steel. But the stock apears to be less risky and, when comparing its historical volatility, Beijing SPC Environment is 1.34 times less risky than Bengang Steel. The stock trades about -0.02 of its potential returns per unit of risk. The Bengang Steel Plates is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 300.00 in Bengang Steel Plates on August 28, 2024 and sell it today you would earn a total of 40.00 from holding Bengang Steel Plates or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Bengang Steel Plates
Performance |
| Timeline |
| Beijing SPC Environment |
| Bengang Steel Plates |
Beijing SPC and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Bengang Steel
The main advantage of trading using opposite Beijing SPC and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC 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.| Beijing SPC vs. Central Plains Environment | Beijing SPC vs. Guangdong Liantai Environmental | Beijing SPC vs. GRINM Semiconductor Materials | Beijing SPC vs. Southchip Semiconductor Technology |
| Bengang Steel vs. Wanhua Chemical Group | Bengang Steel vs. Shandong Gold Mining | Bengang Steel vs. Rongsheng Petrochemical Co | Bengang Steel vs. Inner Mongolia BaoTou |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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