Correlation Between Kangping Technology and Biwin Storage
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By analyzing existing cross correlation between Kangping Technology Co and Biwin Storage Technology, you can compare the effects of market volatilities on Kangping Technology 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 Kangping Technology with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Biwin Storage.
Diversification Opportunities for Kangping Technology and Biwin Storage
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kangping and Biwin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co 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 Kangping Technology 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 Kangping Technology Co 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 Kangping Technology i.e., Kangping Technology and Biwin Storage go up and down completely randomly.
Pair Corralation between Kangping Technology and Biwin Storage
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 0.64 times more return on investment than Biwin Storage. However, Kangping Technology Co is 1.57 times less risky than Biwin Storage. It trades about 0.09 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.04 per unit of risk. If you would invest 1,825 in Kangping Technology Co on September 5, 2024 and sell it today you would earn a total of 541.00 from holding Kangping Technology Co or generate 29.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangping Technology Co vs. Biwin Storage Technology
Performance |
| Timeline |
| Kangping Technology |
| Biwin Storage Technology |
Kangping Technology and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Biwin Storage
The main advantage of trading using opposite Kangping Technology and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology 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.| Kangping Technology vs. Biwin Storage Technology | Kangping Technology vs. PetroChina Co Ltd | Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. China Construction Bank |
| Biwin Storage vs. Guangdong Shenglu Telecommunication | Biwin Storage vs. Sunwave Communications Co | Biwin Storage vs. Jiangnan Mould Plastic | Biwin Storage vs. Ningxia Building Materials |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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