Correlation Between Dongjiang Environmental and Biwin Storage
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By analyzing existing cross correlation between Dongjiang Environmental Co and Biwin Storage Technology, you can compare the effects of market volatilities on Dongjiang Environmental 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 Dongjiang Environmental with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjiang Environmental and Biwin Storage.
Diversification Opportunities for Dongjiang Environmental and Biwin Storage
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongjiang and Biwin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dongjiang Environmental 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 Dongjiang 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 Dongjiang Environmental 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 Dongjiang Environmental i.e., Dongjiang Environmental and Biwin Storage go up and down completely randomly.
Pair Corralation between Dongjiang Environmental and Biwin Storage
Assuming the 90 days trading horizon Dongjiang Environmental Co is expected to generate 0.54 times more return on investment than Biwin Storage. However, Dongjiang Environmental Co is 1.84 times less risky than Biwin Storage. It trades about 0.08 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about -0.01 per unit of risk. If you would invest 487.00 in Dongjiang Environmental Co on September 4, 2024 and sell it today you would earn a total of 15.00 from holding Dongjiang Environmental Co or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongjiang Environmental Co vs. Biwin Storage Technology
Performance |
| Timeline |
| Dongjiang Environmental |
| Biwin Storage Technology |
Dongjiang Environmental and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongjiang Environmental and Biwin Storage
The main advantage of trading using opposite Dongjiang Environmental and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjiang Environmental 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.| Dongjiang Environmental vs. Ming Yang Smart | Dongjiang Environmental vs. 159681 | Dongjiang Environmental vs. 159005 | Dongjiang Environmental vs. 516220 |
| Biwin Storage vs. Ningxia Younglight Chemicals | Biwin Storage vs. Dymatic Chemicals | Biwin Storage vs. Miracll Chemicals Co | Biwin Storage vs. Shenyang Chemical Industry |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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