Correlation Between Shanghai Liangxin and Biwin Storage
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By analyzing existing cross correlation between Shanghai Liangxin Electrical and Biwin Storage Technology, you can compare the effects of market volatilities on Shanghai Liangxin 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 Shanghai Liangxin with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Liangxin and Biwin Storage.
Diversification Opportunities for Shanghai Liangxin and Biwin Storage
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Biwin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Liangxin Electrical 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 Shanghai Liangxin 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 Shanghai Liangxin Electrical 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 Shanghai Liangxin i.e., Shanghai Liangxin and Biwin Storage go up and down completely randomly.
Pair Corralation between Shanghai Liangxin and Biwin Storage
Assuming the 90 days trading horizon Shanghai Liangxin Electrical is expected to under-perform the Biwin Storage. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Liangxin Electrical is 1.96 times less risky than Biwin Storage. The stock trades about -0.01 of its potential returns per unit of risk. The Biwin Storage Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,302 in Biwin Storage Technology on September 12, 2024 and sell it today you would lose (1,272) from holding Biwin Storage Technology or give up 17.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Liangxin Electrical vs. Biwin Storage Technology
Performance |
| Timeline |
| Shanghai Liangxin |
| Biwin Storage Technology |
Shanghai Liangxin and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Liangxin and Biwin Storage
The main advantage of trading using opposite Shanghai Liangxin and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Liangxin 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.| Shanghai Liangxin vs. Xiangyang Automobile Bearing | Shanghai Liangxin vs. Jiangsu Xinri E Vehicle | Shanghai Liangxin vs. Quectel Wireless Solutions | Shanghai Liangxin vs. Xiamen Bank Co |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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