Correlation Between Bingshan Refrigeration and Biwin Storage
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By analyzing existing cross correlation between Bingshan Refrigeration and and Biwin Storage Technology, you can compare the effects of market volatilities on Bingshan Refrigeration 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 Bingshan Refrigeration with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bingshan Refrigeration and Biwin Storage.
Diversification Opportunities for Bingshan Refrigeration and Biwin Storage
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bingshan and Biwin is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bingshan Refrigeration and 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 Bingshan Refrigeration 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 Bingshan Refrigeration and 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 Bingshan Refrigeration i.e., Bingshan Refrigeration and Biwin Storage go up and down completely randomly.
Pair Corralation between Bingshan Refrigeration and Biwin Storage
Assuming the 90 days trading horizon Bingshan Refrigeration and is expected to under-perform the Biwin Storage. But the stock apears to be less risky and, when comparing its historical volatility, Bingshan Refrigeration and is 1.2 times less risky than Biwin Storage. The stock trades about -0.04 of its potential returns per unit of risk. The Biwin Storage Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,829 in Biwin Storage Technology on October 10, 2024 and sell it today you would earn a total of 31.00 from holding Biwin Storage Technology or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bingshan Refrigeration and vs. Biwin Storage Technology
Performance |
| Timeline |
| Bingshan Refrigeration |
| Biwin Storage Technology |
Bingshan Refrigeration and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bingshan Refrigeration and Biwin Storage
The main advantage of trading using opposite Bingshan Refrigeration and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bingshan Refrigeration 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.| Bingshan Refrigeration vs. Biwin Storage Technology | Bingshan Refrigeration vs. PetroChina Co Ltd | Bingshan Refrigeration vs. Industrial and Commercial | Bingshan Refrigeration vs. China Construction Bank |
| Biwin Storage vs. Lootom Telcovideo Network | Biwin Storage vs. Kidswant Children Products | Biwin Storage vs. Guangzhou Ruoyuchen Information | Biwin Storage vs. Talkweb Information System |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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