Correlation Between Biwin Storage and Guilin Seamild
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By analyzing existing cross correlation between Biwin Storage Technology and Guilin Seamild Foods, you can compare the effects of market volatilities on Biwin Storage and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Guilin Seamild.
Diversification Opportunities for Biwin Storage and Guilin Seamild
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Biwin and Guilin is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Biwin Storage i.e., Biwin Storage and Guilin Seamild go up and down completely randomly.
Pair Corralation between Biwin Storage and Guilin Seamild
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 1.35 times more return on investment than Guilin Seamild. However, Biwin Storage is 1.35 times more volatile than Guilin Seamild Foods. It trades about 0.1 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.04 per unit of risk. If you would invest 5,697 in Biwin Storage Technology on November 7, 2024 and sell it today you would earn a total of 253.00 from holding Biwin Storage Technology or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Guilin Seamild Foods
Performance |
| Timeline |
| Biwin Storage Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guilin Seamild Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Biwin Storage and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Guilin Seamild
The main advantage of trading using opposite Biwin Storage and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.The idea behind Biwin Storage Technology and Guilin Seamild Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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