Correlation Between Shenzhen MTC and Biwin Storage
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By analyzing existing cross correlation between Shenzhen MTC Co and Biwin Storage Technology, you can compare the effects of market volatilities on Shenzhen MTC 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 Shenzhen MTC with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MTC and Biwin Storage.
Diversification Opportunities for Shenzhen MTC and Biwin Storage
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Biwin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MTC 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 Shenzhen MTC 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 Shenzhen MTC 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 Shenzhen MTC i.e., Shenzhen MTC and Biwin Storage go up and down completely randomly.
Pair Corralation between Shenzhen MTC and Biwin Storage
Assuming the 90 days trading horizon Shenzhen MTC Co is expected to generate 0.59 times more return on investment than Biwin Storage. However, Shenzhen MTC Co is 1.7 times less risky than Biwin Storage. It trades about -0.16 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about -0.27 per unit of risk. If you would invest 552.00 in Shenzhen MTC Co on September 12, 2024 and sell it today you would lose (35.00) from holding Shenzhen MTC Co or give up 6.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MTC Co vs. Biwin Storage Technology
Performance |
| Timeline |
| Shenzhen MTC |
| Biwin Storage Technology |
Shenzhen MTC and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MTC and Biwin Storage
The main advantage of trading using opposite Shenzhen MTC and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MTC 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.| Shenzhen MTC vs. Tianjin Pengling Rubber | Shenzhen MTC vs. Hengerda New Materials | Shenzhen MTC vs. Chongqing Sulian Plastic | Shenzhen MTC vs. Fuda Alloy Materials |
| Biwin Storage vs. Gansu Jiu Steel | Biwin Storage vs. Shandong Mining Machinery | Biwin Storage vs. Aba Chemicals Corp | Biwin Storage vs. BlueFocus Communication Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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