Correlation Between Henzhen Zhaowei and Biwin Storage
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henzhen Zhaowei Machinery and Biwin Storage Technology, you can compare the effects of market volatilities on Henzhen Zhaowei 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 Henzhen Zhaowei with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henzhen Zhaowei and Biwin Storage.
Diversification Opportunities for Henzhen Zhaowei and Biwin Storage
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henzhen and Biwin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Henzhen Zhaowei Machinery 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 Henzhen Zhaowei 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 Henzhen Zhaowei Machinery 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 Henzhen Zhaowei i.e., Henzhen Zhaowei and Biwin Storage go up and down completely randomly.
Pair Corralation between Henzhen Zhaowei and Biwin Storage
Assuming the 90 days trading horizon Henzhen Zhaowei Machinery is expected to generate 0.81 times more return on investment than Biwin Storage. However, Henzhen Zhaowei Machinery is 1.24 times less risky than Biwin Storage. It trades about 0.05 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.0 per unit of risk. If you would invest 5,875 in Henzhen Zhaowei Machinery on September 4, 2024 and sell it today you would earn a total of 1,959 from holding Henzhen Zhaowei Machinery or generate 33.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henzhen Zhaowei Machinery vs. Biwin Storage Technology
Performance |
| Timeline |
| Henzhen Zhaowei Machinery |
| Biwin Storage Technology |
Henzhen Zhaowei and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henzhen Zhaowei and Biwin Storage
The main advantage of trading using opposite Henzhen Zhaowei and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henzhen Zhaowei 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.| Henzhen Zhaowei vs. Biwin Storage Technology | Henzhen Zhaowei vs. PetroChina Co Ltd | Henzhen Zhaowei vs. Industrial and Commercial | Henzhen Zhaowei vs. China Construction Bank |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |