Correlation Between Biwin Storage and Shenzhen SDG
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By analyzing existing cross correlation between Biwin Storage Technology and Shenzhen SDG Information, you can compare the effects of market volatilities on Biwin Storage and Shenzhen SDG 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 Biwin Storage with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Shenzhen SDG.
Diversification Opportunities for Biwin Storage and Shenzhen SDG
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Biwin and Shenzhen is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Biwin Storage 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 Biwin Storage Technology are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Biwin Storage i.e., Biwin Storage and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Biwin Storage and Shenzhen SDG
Assuming the 90 days trading horizon Biwin Storage is expected to generate 1.55 times less return on investment than Shenzhen SDG. In addition to that, Biwin Storage is 1.28 times more volatile than Shenzhen SDG Information. It trades about 0.1 of its total potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.2 per unit of volatility. If you would invest 522.00 in Shenzhen SDG Information on November 7, 2024 and sell it today you would earn a total of 40.00 from holding Shenzhen SDG Information or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Shenzhen SDG Information
Performance |
| Timeline |
| Biwin Storage Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shenzhen SDG Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Biwin Storage and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Shenzhen SDG
The main advantage of trading using opposite Biwin Storage and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.The idea behind Biwin Storage Technology and Shenzhen SDG Information 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.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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