Correlation Between Tongxing Environmental and Bengang Steel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongxing Environmental Protection and Bengang Steel Plates, you can compare the effects of market volatilities on Tongxing Environmental 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 Tongxing Environmental with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongxing Environmental and Bengang Steel.
Diversification Opportunities for Tongxing Environmental and Bengang Steel
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongxing and Bengang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tongxing Environmental Protect 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 Tongxing Environmental 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 Tongxing Environmental Protection 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 Tongxing Environmental i.e., Tongxing Environmental and Bengang Steel go up and down completely randomly.
Pair Corralation between Tongxing Environmental and Bengang Steel
Assuming the 90 days trading horizon Tongxing Environmental Protection is expected to generate 1.31 times more return on investment than Bengang Steel. However, Tongxing Environmental is 1.31 times more volatile than Bengang Steel Plates. It trades about 0.0 of its potential returns per unit of risk. Bengang Steel Plates is currently generating about 0.0 per unit of risk. If you would invest 1,822 in Tongxing Environmental Protection on September 4, 2024 and sell it today you would lose (198.00) from holding Tongxing Environmental Protection or give up 10.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongxing Environmental Protect vs. Bengang Steel Plates
Performance |
| Timeline |
| Tongxing Environmental |
| Bengang Steel Plates |
Tongxing Environmental and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongxing Environmental and Bengang Steel
The main advantage of trading using opposite Tongxing Environmental and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongxing Environmental 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.| Tongxing Environmental vs. Ming Yang Smart | Tongxing Environmental vs. 159681 | Tongxing Environmental vs. 159005 | Tongxing Environmental vs. 516220 |
| Bengang Steel vs. Zijin Mining Group | Bengang Steel vs. Wanhua Chemical Group | Bengang Steel vs. Baoshan Iron Steel | Bengang Steel vs. Rongsheng Petrochemical Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |