Correlation Between Wenzhou Hongfeng and Biwin Storage
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By analyzing existing cross correlation between Wenzhou Hongfeng Electrical and Biwin Storage Technology, you can compare the effects of market volatilities on Wenzhou Hongfeng 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 Wenzhou Hongfeng with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Hongfeng and Biwin Storage.
Diversification Opportunities for Wenzhou Hongfeng and Biwin Storage
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wenzhou and Biwin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Hongfeng 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 Wenzhou Hongfeng 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 Wenzhou Hongfeng 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 Wenzhou Hongfeng i.e., Wenzhou Hongfeng and Biwin Storage go up and down completely randomly.
Pair Corralation between Wenzhou Hongfeng and Biwin Storage
Assuming the 90 days trading horizon Wenzhou Hongfeng Electrical is expected to under-perform the Biwin Storage. But the stock apears to be less risky and, when comparing its historical volatility, Wenzhou Hongfeng Electrical is 1.1 times less risky than Biwin Storage. The stock trades about -0.3 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 5,883 in Biwin Storage Technology on October 11, 2024 and sell it today you would lose (32.00) from holding Biwin Storage Technology or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wenzhou Hongfeng Electrical vs. Biwin Storage Technology
Performance |
| Timeline |
| Wenzhou Hongfeng Ele |
| Biwin Storage Technology |
Wenzhou Hongfeng and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Hongfeng and Biwin Storage
The main advantage of trading using opposite Wenzhou Hongfeng and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Hongfeng 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.| Wenzhou Hongfeng vs. Bloomage Biotechnology Corp | Wenzhou Hongfeng vs. Wuhan Hvsen Biotechnology | Wenzhou Hongfeng vs. Huaxia Fund Management | Wenzhou Hongfeng vs. Guangdong Marubi Biotechnology |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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