Correlation Between Biwin Storage and Guangdong Qunxing
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By analyzing existing cross correlation between Biwin Storage Technology and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Biwin Storage and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Guangdong Qunxing.
Diversification Opportunities for Biwin Storage and Guangdong Qunxing
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Biwin and Guangdong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Biwin Storage i.e., Biwin Storage and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Biwin Storage and Guangdong Qunxing
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Guangdong Qunxing. In addition to that, Biwin Storage is 1.05 times more volatile than Guangdong Qunxing Toys. It trades about -0.06 of its total potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.18 per unit of volatility. If you would invest 588.00 in Guangdong Qunxing Toys on August 31, 2024 and sell it today you would earn a total of 83.00 from holding Guangdong Qunxing Toys or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Biwin Storage Technology |
| Guangdong Qunxing Toys |
Biwin Storage and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Guangdong Qunxing
The main advantage of trading using opposite Biwin Storage and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Biwin Storage vs. Kweichow Moutai Co | Biwin Storage vs. NAURA Technology Group | Biwin Storage vs. APT Medical | Biwin Storage vs. Contemporary Amperex Technology |
| Guangdong Qunxing vs. Xiamen Bank Co | Guangdong Qunxing vs. Haima Automobile Group | Guangdong Qunxing vs. SUNSEA Telecommunications Co | Guangdong Qunxing vs. Fiberhome Telecommunication Technologies |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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