Correlation Between Huafa Industrial and Biwin Storage
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By analyzing existing cross correlation between Huafa Industrial Co and Biwin Storage Technology, you can compare the effects of market volatilities on Huafa Industrial 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 Huafa Industrial with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Biwin Storage.
Diversification Opportunities for Huafa Industrial and Biwin Storage
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huafa and Biwin is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial 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 Huafa Industrial 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 Huafa Industrial 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 Huafa Industrial i.e., Huafa Industrial and Biwin Storage go up and down completely randomly.
Pair Corralation between Huafa Industrial and Biwin Storage
Assuming the 90 days trading horizon Huafa Industrial is expected to generate 4.1 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Huafa Industrial Co is 2.33 times less risky than Biwin Storage. It trades about 0.21 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 5,950 in Biwin Storage Technology on November 27, 2024 and sell it today you would earn a total of 1,110 from holding Biwin Storage Technology or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Biwin Storage Technology
Performance |
| Timeline |
| Huafa Industrial |
| Biwin Storage Technology |
Huafa Industrial and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Biwin Storage
The main advantage of trading using opposite Huafa Industrial and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial 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.| Huafa Industrial vs. China World Trade | Huafa Industrial vs. GRIPM Advanced Materials | Huafa Industrial vs. Hangzhou Minsheng Healthcare | Huafa Industrial vs. China Reform Health |
| Biwin Storage vs. Shanghai CEO Environmental | Biwin Storage vs. CIMC Vehicles Co | Biwin Storage vs. Jinling Hotel Corp | Biwin Storage vs. Guangzhou Automobile Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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