Correlation Between Ningxia Building and Biwin Storage
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By analyzing existing cross correlation between Ningxia Building Materials and Biwin Storage Technology, you can compare the effects of market volatilities on Ningxia Building 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 Ningxia Building with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and Biwin Storage.
Diversification Opportunities for Ningxia Building and Biwin Storage
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Biwin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials 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 Ningxia Building 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 Ningxia Building Materials 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 Ningxia Building i.e., Ningxia Building and Biwin Storage go up and down completely randomly.
Pair Corralation between Ningxia Building and Biwin Storage
Assuming the 90 days trading horizon Ningxia Building Materials is expected to generate 0.86 times more return on investment than Biwin Storage. However, Ningxia Building Materials is 1.17 times less risky than Biwin Storage. It trades about 0.13 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about -0.17 per unit of risk. If you would invest 1,395 in Ningxia Building Materials on September 13, 2024 and sell it today you would earn a total of 101.00 from holding Ningxia Building Materials or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Building Materials vs. Biwin Storage Technology
Performance |
| Timeline |
| Ningxia Building Mat |
| Biwin Storage Technology |
Ningxia Building and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and Biwin Storage
The main advantage of trading using opposite Ningxia Building and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building 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.| Ningxia Building vs. Zijin Mining Group | Ningxia Building vs. Wanhua Chemical Group | Ningxia Building vs. Baoshan Iron Steel | Ningxia Building vs. Shandong Gold Mining |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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