Correlation Between Biwin Storage and Huagong Tech
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By analyzing existing cross correlation between Biwin Storage Technology and Huagong Tech Co, you can compare the effects of market volatilities on Biwin Storage and Huagong Tech 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 Huagong Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Huagong Tech.
Diversification Opportunities for Biwin Storage and Huagong Tech
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Biwin and Huagong is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Huagong Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huagong Tech 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 Huagong Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huagong Tech has no effect on the direction of Biwin Storage i.e., Biwin Storage and Huagong Tech go up and down completely randomly.
Pair Corralation between Biwin Storage and Huagong Tech
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 1.64 times more return on investment than Huagong Tech. However, Biwin Storage is 1.64 times more volatile than Huagong Tech Co. It trades about 0.06 of its potential returns per unit of risk. Huagong Tech Co is currently generating about 0.06 per unit of risk. If you would invest 2,570 in Biwin Storage Technology on October 16, 2024 and sell it today you would earn a total of 3,012 from holding Biwin Storage Technology or generate 117.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Biwin Storage Technology vs. Huagong Tech Co
Performance |
| Timeline |
| Biwin Storage Technology |
| Huagong Tech |
Biwin Storage and Huagong Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Huagong Tech
The main advantage of trading using opposite Biwin Storage and Huagong Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Huagong Tech 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 Huagong Tech will offset losses from the drop in Huagong Tech's long position.| Biwin Storage vs. Gan Yuan Foods | Biwin Storage vs. Xiwang Foodstuffs Co | Biwin Storage vs. Tibet Huayu Mining | Biwin Storage vs. Chengtun Mining Group |
| Huagong Tech vs. Biwin Storage Technology | Huagong Tech vs. PetroChina Co Ltd | Huagong Tech vs. Industrial and Commercial | Huagong Tech vs. China Construction Bank |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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