Correlation Between Super Dragon and Biwin Storage
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Biwin Storage Technology, you can compare the effects of market volatilities on Super Dragon 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 Super Dragon with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Biwin Storage.
Diversification Opportunities for Super Dragon and Biwin Storage
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Super and Biwin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast 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 Super Dragon 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 Super Dragon Engineering Plastics 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 Super Dragon i.e., Super Dragon and Biwin Storage go up and down completely randomly.
Pair Corralation between Super Dragon and Biwin Storage
Assuming the 90 days trading horizon Super Dragon is expected to generate 4.94 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Super Dragon Engineering Plastics is 1.61 times less risky than Biwin Storage. It trades about 0.03 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,606 in Biwin Storage Technology on September 13, 2024 and sell it today you would earn a total of 4,424 from holding Biwin Storage Technology or generate 275.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.95% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Biwin Storage Technology
Performance |
| Timeline |
| Super Dragon Enginee |
| Biwin Storage Technology |
Super Dragon and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Biwin Storage
The main advantage of trading using opposite Super Dragon and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon 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.| Super Dragon vs. Zhejiang JIULI Hi tech | Super Dragon vs. Qilu Bank Co | Super Dragon vs. Kuang Chi Technologies | Super Dragon vs. Guangdong Shenglu Telecommunication |
| Biwin Storage vs. Nanjing Putian Telecommunications | Biwin Storage vs. Tianjin Realty Development | Biwin Storage vs. Kangyue Technology Co | Biwin Storage vs. Shenzhen Hifuture Electric |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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