Correlation Between Penghua Shenzhen and Bengang Steel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Penghua Shenzhen Energy and Bengang Steel Plates, you can compare the effects of market volatilities on Penghua Shenzhen 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 Penghua Shenzhen with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Bengang Steel.
Diversification Opportunities for Penghua Shenzhen and Bengang Steel
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penghua and Bengang is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy 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 Penghua Shenzhen 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 Penghua Shenzhen Energy 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 Penghua Shenzhen i.e., Penghua Shenzhen and Bengang Steel go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Bengang Steel
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.33 times more return on investment than Bengang Steel. However, Penghua Shenzhen Energy is 2.99 times less risky than Bengang Steel. It trades about 0.03 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 562.00 in Penghua Shenzhen Energy on August 31, 2024 and sell it today you would earn a total of 39.00 from holding Penghua Shenzhen Energy or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Bengang Steel Plates
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Bengang Steel Plates |
Penghua Shenzhen and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Bengang Steel
The main advantage of trading using opposite Penghua Shenzhen and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen 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.| Penghua Shenzhen vs. Maoming Petro Chemical Shihua | Penghua Shenzhen vs. Wuxi Chemical Equipment | Penghua Shenzhen vs. Miracll Chemicals Co | Penghua Shenzhen vs. MayAir Technology Co |
| Bengang Steel vs. Agricultural Bank of | Bengang Steel vs. Uxi Unicomp Technology | Bengang Steel vs. Peoples Insurance of | Bengang Steel vs. 360 Security 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |