Correlation Between Biwin Storage and Wuxi Chemical
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By analyzing existing cross correlation between Biwin Storage Technology and Wuxi Chemical Equipment, you can compare the effects of market volatilities on Biwin Storage and Wuxi Chemical 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 Wuxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Wuxi Chemical.
Diversification Opportunities for Biwin Storage and Wuxi Chemical
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biwin and Wuxi is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Wuxi Chemical Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Chemical Equipment 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 Wuxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Chemical Equipment has no effect on the direction of Biwin Storage i.e., Biwin Storage and Wuxi Chemical go up and down completely randomly.
Pair Corralation between Biwin Storage and Wuxi Chemical
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 1.88 times more return on investment than Wuxi Chemical. However, Biwin Storage is 1.88 times more volatile than Wuxi Chemical Equipment. It trades about 0.01 of its potential returns per unit of risk. Wuxi Chemical Equipment is currently generating about -0.03 per unit of risk. If you would invest 5,977 in Biwin Storage Technology on October 30, 2024 and sell it today you would lose (27.00) from holding Biwin Storage Technology or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Biwin Storage Technology vs. Wuxi Chemical Equipment
Performance |
| Timeline |
| Biwin Storage Technology |
| Wuxi Chemical Equipment |
Biwin Storage and Wuxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Wuxi Chemical
The main advantage of trading using opposite Biwin Storage and Wuxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Wuxi Chemical 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 Wuxi Chemical will offset losses from the drop in Wuxi Chemical's long position.| Biwin Storage vs. Xiandai Investment Co | Biwin Storage vs. Jiangsu Yueda Investment | Biwin Storage vs. Tieling Newcity Investment | Biwin Storage vs. Jointo Energy Investment |
| Wuxi Chemical vs. Zhongshan Broad Ocean Motor | Wuxi Chemical vs. Zhengping RoadBridge Constr | Wuxi Chemical vs. Chahua Modern Housewares | Wuxi Chemical vs. Northern United Publishing |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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