Correlation Between Xiandai Investment and Biwin Storage
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By analyzing existing cross correlation between Xiandai Investment Co and Biwin Storage Technology, you can compare the effects of market volatilities on Xiandai Investment and Biwin Storage 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 Xiandai Investment with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Biwin Storage.
Diversification Opportunities for Xiandai Investment and Biwin Storage
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xiandai and Biwin is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Biwin Storage Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biwin Storage Technology and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Biwin Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biwin Storage Technology has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Biwin Storage go up and down completely randomly.
Pair Corralation between Xiandai Investment and Biwin Storage
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 8.85 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Xiandai Investment Co is 2.71 times less risky than Biwin Storage. It trades about 0.03 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,697 in Biwin Storage Technology on November 7, 2024 and sell it today you would earn a total of 253.00 from holding Biwin Storage Technology or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Biwin Storage Technology
Performance |
| Timeline |
| Xiandai Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Biwin Storage Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xiandai Investment and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Biwin Storage
The main advantage of trading using opposite Xiandai Investment and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Biwin Storage 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 Biwin Storage will offset losses from the drop in Biwin Storage's long position.The idea behind Xiandai Investment Co and Biwin Storage Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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