Correlation Between Luyin Investment and Biwin Storage
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By analyzing existing cross correlation between Luyin Investment Group and Biwin Storage Technology, you can compare the effects of market volatilities on Luyin Investment 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 Luyin Investment with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Biwin Storage.
Diversification Opportunities for Luyin Investment and Biwin Storage
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Biwin is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group 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 Luyin Investment 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 Luyin Investment Group 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 Luyin Investment i.e., Luyin Investment and Biwin Storage go up and down completely randomly.
Pair Corralation between Luyin Investment and Biwin Storage
Assuming the 90 days trading horizon Luyin Investment is expected to generate 1.52 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Luyin Investment Group is 1.44 times less risky than Biwin Storage. It trades about 0.1 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,050 in Biwin Storage Technology on September 21, 2024 and sell it today you would earn a total of 339.00 from holding Biwin Storage Technology or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Biwin Storage Technology
Performance |
| Timeline |
| Luyin Investment |
| Biwin Storage Technology |
Luyin Investment and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Biwin Storage
The main advantage of trading using opposite Luyin Investment and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment 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.| Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining | Luyin Investment vs. Rongsheng Petrochemical Co |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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