Correlation Between Hefei Metalforming and Biwin Storage
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By analyzing existing cross correlation between Hefei Metalforming Mach and Biwin Storage Technology, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Biwin Storage.
Diversification Opportunities for Hefei Metalforming and Biwin Storage
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and Biwin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach 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 Hefei Metalforming 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 Hefei Metalforming Mach 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 Hefei Metalforming i.e., Hefei Metalforming and Biwin Storage go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Biwin Storage
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 0.71 times more return on investment than Biwin Storage. However, Hefei Metalforming Mach is 1.4 times less risky than Biwin Storage. It trades about 0.15 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.08 per unit of risk. If you would invest 612.00 in Hefei Metalforming Mach on August 28, 2024 and sell it today you would earn a total of 154.00 from holding Hefei Metalforming Mach or generate 25.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Biwin Storage Technology
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Biwin Storage Technology |
Hefei Metalforming and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Biwin Storage
The main advantage of trading using opposite Hefei Metalforming and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. Biwin Storage Technology | Hefei Metalforming vs. PetroChina Co Ltd | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. China Construction Bank |
| Biwin Storage vs. Lutian Machinery Co | Biwin Storage vs. China Longyuan Power | Biwin Storage vs. Changshu Tongrun Auto | Biwin Storage vs. PetroChina Co Ltd |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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