Correlation Between Biwin Storage and Shenzhen Changfang
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By analyzing existing cross correlation between Biwin Storage Technology and Shenzhen Changfang Light, you can compare the effects of market volatilities on Biwin Storage and Shenzhen Changfang 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 Shenzhen Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Shenzhen Changfang.
Diversification Opportunities for Biwin Storage and Shenzhen Changfang
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biwin and Shenzhen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Shenzhen Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Biwin Storage i.e., Biwin Storage and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Biwin Storage and Shenzhen Changfang
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Shenzhen Changfang. In addition to that, Biwin Storage is 1.02 times more volatile than Shenzhen Changfang Light. It trades about -0.03 of its total potential returns per unit of risk. Shenzhen Changfang Light is currently generating about 0.18 per unit of volatility. If you would invest 156.00 in Shenzhen Changfang Light on September 5, 2024 and sell it today you would earn a total of 22.00 from holding Shenzhen Changfang Light or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Biwin Storage Technology |
| Shenzhen Changfang Light |
Biwin Storage and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Shenzhen Changfang
The main advantage of trading using opposite Biwin Storage and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Shenzhen Changfang 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 Shenzhen Changfang will offset losses from the drop in Shenzhen Changfang's long position.| Biwin Storage vs. Guangdong Shenglu Telecommunication | Biwin Storage vs. Sunwave Communications Co | Biwin Storage vs. Jiangnan Mould Plastic | Biwin Storage vs. Ningxia Building Materials |
| Shenzhen Changfang vs. Biwin Storage Technology | Shenzhen Changfang vs. PetroChina Co Ltd | Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. China Construction Bank |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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