Correlation Between Sinocat Environmental and Bengang Steel
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By analyzing existing cross correlation between Sinocat Environmental Technology and Bengang Steel Plates, you can compare the effects of market volatilities on Sinocat 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 Sinocat Environmental with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and Bengang Steel.
Diversification Opportunities for Sinocat Environmental and Bengang Steel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sinocat and Bengang is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo 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 Sinocat 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 Sinocat Environmental Technology 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 Sinocat Environmental i.e., Sinocat Environmental and Bengang Steel go up and down completely randomly.
Pair Corralation between Sinocat Environmental and Bengang Steel
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to under-perform the Bengang Steel. In addition to that, Sinocat Environmental is 1.43 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. Bengang Steel Plates
Performance |
| Timeline |
| Sinocat Environmental |
| Bengang Steel Plates |
Sinocat Environmental and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and Bengang Steel
The main advantage of trading using opposite Sinocat Environmental and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat 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.| Sinocat Environmental vs. Agricultural Bank of | Sinocat Environmental vs. Postal Savings Bank | Sinocat Environmental vs. Gansu Jiu Steel | Sinocat Environmental vs. Shandong Mining Machinery |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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