Correlation Between Everdisplay Optronics and Bengang Steel
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By analyzing existing cross correlation between Everdisplay Optronics Shanghai and Bengang Steel Plates, you can compare the effects of market volatilities on Everdisplay Optronics 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 Everdisplay Optronics with a short position of Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everdisplay Optronics and Bengang Steel.
Diversification Opportunities for Everdisplay Optronics and Bengang Steel
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Everdisplay and Bengang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Everdisplay Optronics Shanghai 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 Everdisplay Optronics 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 Everdisplay Optronics Shanghai 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 Everdisplay Optronics i.e., Everdisplay Optronics and Bengang Steel go up and down completely randomly.
Pair Corralation between Everdisplay Optronics and Bengang Steel
Assuming the 90 days trading horizon Everdisplay Optronics is expected to generate 1.47 times less return on investment than Bengang Steel. But when comparing it to its historical volatility, Everdisplay Optronics Shanghai is 1.21 times less risky than Bengang Steel. It trades about 0.13 of its potential returns per unit of risk. Bengang Steel Plates is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 244.00 in Bengang Steel Plates on September 23, 2024 and sell it today you would earn a total of 91.00 from holding Bengang Steel Plates or generate 37.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Everdisplay Optronics Shanghai vs. Bengang Steel Plates
Performance |
Timeline |
Everdisplay Optronics |
Bengang Steel Plates |
Everdisplay Optronics and Bengang Steel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Everdisplay Optronics and Bengang Steel
The main advantage of trading using opposite Everdisplay Optronics and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everdisplay Optronics 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.Everdisplay Optronics vs. Industrial and Commercial | Everdisplay Optronics vs. China Construction Bank | Everdisplay Optronics vs. Agricultural Bank of | Everdisplay Optronics vs. Bank of China |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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