Correlation Between Biwin Storage and Nanxing Furniture
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By analyzing existing cross correlation between Biwin Storage Technology and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Biwin Storage and Nanxing Furniture 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 Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Nanxing Furniture.
Diversification Opportunities for Biwin Storage and Nanxing Furniture
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biwin and Nanxing is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture 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 Nanxing Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanxing Furniture has no effect on the direction of Biwin Storage i.e., Biwin Storage and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Biwin Storage and Nanxing Furniture
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 1.85 times more return on investment than Nanxing Furniture. However, Biwin Storage is 1.85 times more volatile than Nanxing Furniture Machinery. It trades about 0.08 of its potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about 0.04 per unit of risk. If you would invest 1,606 in Biwin Storage Technology on August 30, 2024 and sell it today you would earn a total of 4,341 from holding Biwin Storage Technology or generate 270.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.85% |
| Values | Daily Returns |
Biwin Storage Technology vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Biwin Storage Technology |
| Nanxing Furniture |
Biwin Storage and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Nanxing Furniture
The main advantage of trading using opposite Biwin Storage and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Nanxing Furniture 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 Nanxing Furniture will offset losses from the drop in Nanxing Furniture's long position.| Biwin Storage vs. China State Construction | Biwin Storage vs. Huafa Industrial Co | Biwin Storage vs. China International Capital | Biwin Storage vs. Kweichow Moutai Co |
| Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. China State Construction | Nanxing Furniture vs. China Mobile Limited | Nanxing Furniture vs. Industrial and Commercial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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