Correlation Between Heren Health and Bengang Steel
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By analyzing existing cross correlation between Heren Health Co and Bengang Steel Plates, you can compare the effects of market volatilities on Heren Health 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 Heren Health with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heren Health and Bengang Steel.
Diversification Opportunities for Heren Health and Bengang Steel
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Heren and Bengang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Heren Health Co 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 Heren Health 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 Heren Health Co 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 Heren Health i.e., Heren Health and Bengang Steel go up and down completely randomly.
Pair Corralation between Heren Health and Bengang Steel
Assuming the 90 days trading horizon Heren Health Co is expected to generate 1.69 times more return on investment than Bengang Steel. However, Heren Health is 1.69 times more volatile than Bengang Steel Plates. It trades about 0.02 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 1,490 in Heren Health Co on September 3, 2024 and sell it today you would lose (56.00) from holding Heren Health Co or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heren Health Co vs. Bengang Steel Plates
Performance |
| Timeline |
| Heren Health |
| Bengang Steel Plates |
Heren Health and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heren Health and Bengang Steel
The main advantage of trading using opposite Heren Health and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heren Health 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.| Heren Health vs. Chengdu Kanghua Biological | Heren Health vs. Beijing Wantai Biological | Heren Health vs. Suzhou Novoprotein Scientific | Heren Health vs. Aluminum Corp of |
| Bengang Steel vs. Threes Company Media | Bengang Steel vs. Shuhua Sports Co | Bengang Steel vs. Inly Media Co | Bengang Steel vs. Beijing Bashi Media |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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