Correlation Between Nancal Energy and Bengang Steel
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By analyzing existing cross correlation between Nancal Energy Saving Tech and Bengang Steel Plates, you can compare the effects of market volatilities on Nancal Energy 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 Nancal Energy with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nancal Energy and Bengang Steel.
Diversification Opportunities for Nancal Energy and Bengang Steel
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nancal and Bengang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nancal Energy Saving Tech 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 Nancal Energy 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 Nancal Energy Saving Tech 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 Nancal Energy i.e., Nancal Energy and Bengang Steel go up and down completely randomly.
Pair Corralation between Nancal Energy and Bengang Steel
Assuming the 90 days trading horizon Nancal Energy Saving Tech is expected to under-perform the Bengang Steel. In addition to that, Nancal Energy is 1.47 times more volatile than Bengang Steel Plates. It trades about -0.02 of its total potential returns per unit of risk. Bengang Steel Plates is currently generating about 0.0 per unit of volatility. If you would invest 395.00 in Bengang Steel Plates on September 1, 2024 and sell it today you would lose (53.00) from holding Bengang Steel Plates or give up 13.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nancal Energy Saving Tech vs. Bengang Steel Plates
Performance |
| Timeline |
| Nancal Energy Saving |
| Bengang Steel Plates |
Nancal Energy and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nancal Energy and Bengang Steel
The main advantage of trading using opposite Nancal Energy and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nancal Energy 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.| Nancal Energy vs. Cultural Investment Holdings | Nancal Energy vs. Gome Telecom Equipment | Nancal Energy vs. Bus Online Co | Nancal Energy vs. Holitech Technology Co |
| Bengang Steel vs. Gome Telecom Equipment | Bengang Steel vs. Shenzhen Kexin Communication | Bengang Steel vs. Wuhan Yangtze Communication | Bengang Steel vs. Sportsoul Co Ltd |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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