Correlation Between XiaMen HongXin and Biwin Storage
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Biwin Storage Technology, you can compare the effects of market volatilities on XiaMen HongXin 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 XiaMen HongXin with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Biwin Storage.
Diversification Opportunities for XiaMen HongXin and Biwin Storage
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between XiaMen and Biwin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech 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 XiaMen HongXin 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 XiaMen HongXin Electron tech 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 XiaMen HongXin i.e., XiaMen HongXin and Biwin Storage go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Biwin Storage
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 0.97 times more return on investment than Biwin Storage. However, XiaMen HongXin Electron tech is 1.03 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 0.02 per unit of risk. If you would invest 1,595 in XiaMen HongXin Electron tech on October 13, 2024 and sell it today you would earn a total of 346.00 from holding XiaMen HongXin Electron tech or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Biwin Storage Technology
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Biwin Storage Technology |
XiaMen HongXin and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Biwin Storage
The main advantage of trading using opposite XiaMen HongXin and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin 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.| XiaMen HongXin vs. Biwin Storage Technology | XiaMen HongXin vs. PetroChina Co Ltd | XiaMen HongXin vs. Industrial and Commercial | XiaMen HongXin vs. China Construction Bank |
| Biwin Storage vs. Southern PublishingMedia Co | Biwin Storage vs. Bomesc Offshore Engineering | Biwin Storage vs. Sunny Loan Top | Biwin Storage vs. Jiangsu Financial Leasing |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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