Correlation Between BCEG Environmental and Bengang Steel
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By analyzing existing cross correlation between BCEG Environmental Remediation and Bengang Steel Plates, you can compare the effects of market volatilities on BCEG 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 BCEG Environmental with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCEG Environmental and Bengang Steel.
Diversification Opportunities for BCEG Environmental and Bengang Steel
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BCEG and Bengang is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BCEG Environmental Remediation 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 BCEG 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 BCEG Environmental Remediation 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 BCEG Environmental i.e., BCEG Environmental and Bengang Steel go up and down completely randomly.
Pair Corralation between BCEG Environmental and Bengang Steel
Assuming the 90 days trading horizon BCEG Environmental Remediation is expected to under-perform the Bengang Steel. In addition to that, BCEG Environmental is 1.35 times more volatile than Bengang Steel Plates. It trades about -0.01 of its total potential returns per unit of risk. Bengang Steel Plates is currently generating about 0.01 per unit of volatility. If you would invest 297.00 in Bengang Steel Plates on October 7, 2024 and sell it today you would earn a total of 9.00 from holding Bengang Steel Plates or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCEG Environmental Remediation vs. Bengang Steel Plates
Performance |
| Timeline |
| BCEG Environmental |
| Bengang Steel Plates |
BCEG Environmental and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCEG Environmental and Bengang Steel
The main advantage of trading using opposite BCEG Environmental and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCEG 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.| BCEG Environmental vs. BeiGene | BCEG Environmental vs. G bits Network Technology | BCEG Environmental vs. China Mobile Limited | BCEG Environmental vs. Gansu Jiu Steel |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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