Correlation Between Biwin Storage and Masterwork Machinery
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By analyzing existing cross correlation between Biwin Storage Technology and Masterwork Machinery, you can compare the effects of market volatilities on Biwin Storage and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Masterwork Machinery.
Diversification Opportunities for Biwin Storage and Masterwork Machinery
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biwin and Masterwork is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of Biwin Storage i.e., Biwin Storage and Masterwork Machinery go up and down completely randomly.
Pair Corralation between Biwin Storage and Masterwork Machinery
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 1.87 times more return on investment than Masterwork Machinery. However, Biwin Storage is 1.87 times more volatile than Masterwork Machinery. It trades about 0.08 of its potential returns per unit of risk. Masterwork Machinery is currently generating about 0.02 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 | Significant |
| Accuracy | 96.85% |
| Values | Daily Returns |
Biwin Storage Technology vs. Masterwork Machinery
Performance |
| Timeline |
| Biwin Storage Technology |
| Masterwork Machinery |
Biwin Storage and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Masterwork Machinery
The main advantage of trading using opposite Biwin Storage and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery'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 |
| Masterwork Machinery vs. PetroChina Co Ltd | Masterwork Machinery vs. China State Construction | Masterwork Machinery vs. China Mobile Limited | Masterwork Machinery 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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