Correlation Between Zhengping RoadBridge and Biwin Storage
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By analyzing existing cross correlation between Zhengping RoadBridge Constr and Biwin Storage Technology, you can compare the effects of market volatilities on Zhengping RoadBridge 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 Zhengping RoadBridge with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengping RoadBridge and Biwin Storage.
Diversification Opportunities for Zhengping RoadBridge and Biwin Storage
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhengping and Biwin is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zhengping RoadBridge Constr 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 Zhengping RoadBridge 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 Zhengping RoadBridge Constr 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 Zhengping RoadBridge i.e., Zhengping RoadBridge and Biwin Storage go up and down completely randomly.
Pair Corralation between Zhengping RoadBridge and Biwin Storage
Assuming the 90 days trading horizon Zhengping RoadBridge Constr is expected to under-perform the Biwin Storage. In addition to that, Zhengping RoadBridge is 1.35 times more volatile than Biwin Storage Technology. It trades about -0.04 of its total potential returns per unit of risk. Biwin Storage Technology is currently generating about -0.01 per unit of volatility. If you would invest 6,030 in Biwin Storage Technology on October 12, 2024 and sell it today you would lose (131.00) from holding Biwin Storage Technology or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengping RoadBridge Constr vs. Biwin Storage Technology
Performance |
| Timeline |
| Zhengping RoadBridge |
| Biwin Storage Technology |
Zhengping RoadBridge and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengping RoadBridge and Biwin Storage
The main advantage of trading using opposite Zhengping RoadBridge and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengping RoadBridge 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.The idea behind Zhengping RoadBridge Constr and Biwin Storage Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Biwin Storage vs. Zhengping RoadBridge Constr | Biwin Storage vs. Jiangsu Broadcasting Cable | Biwin Storage vs. Zhongshan Broad Ocean Motor | Biwin Storage vs. Spring Airlines Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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