Correlation Between Biwin Storage and Chengdu Xingrong
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By analyzing existing cross correlation between Biwin Storage Technology and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Biwin Storage and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Chengdu Xingrong.
Diversification Opportunities for Biwin Storage and Chengdu Xingrong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Biwin and Chengdu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Biwin Storage i.e., Biwin Storage and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Biwin Storage and Chengdu Xingrong
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Chengdu Xingrong. In addition to that, Biwin Storage is 2.19 times more volatile than Chengdu Xingrong Investment. It trades about -0.17 of its total potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.1 per unit of volatility. If you would invest 750.00 in Chengdu Xingrong Investment on September 13, 2024 and sell it today you would lose (26.00) from holding Chengdu Xingrong Investment or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Biwin Storage Technology |
| Chengdu Xingrong Inv |
Biwin Storage and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Chengdu Xingrong
The main advantage of trading using opposite Biwin Storage and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Biwin Storage vs. Nanjing Putian Telecommunications | Biwin Storage vs. Tianjin Realty Development | Biwin Storage vs. Kangyue Technology Co | Biwin Storage vs. Shenzhen Hifuture Electric |
| Chengdu Xingrong vs. Anhui Jianghuai Automobile | Chengdu Xingrong vs. Beijing Sanyuan Foods | Chengdu Xingrong vs. Qingdao Foods Co | Chengdu Xingrong vs. Quectel Wireless Solutions |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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