Correlation Between Biwin Storage and Guangzhou Boji
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By analyzing existing cross correlation between Biwin Storage Technology and Guangzhou Boji Medical, you can compare the effects of market volatilities on Biwin Storage and Guangzhou Boji 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 Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Guangzhou Boji.
Diversification Opportunities for Biwin Storage and Guangzhou Boji
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Biwin and Guangzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical 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 Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Biwin Storage i.e., Biwin Storage and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Biwin Storage and Guangzhou Boji
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Guangzhou Boji. In addition to that, Biwin Storage is 1.45 times more volatile than Guangzhou Boji Medical. It trades about -0.06 of its total potential returns per unit of risk. Guangzhou Boji Medical is currently generating about -0.03 per unit of volatility. If you would invest 919.00 in Guangzhou Boji Medical on August 31, 2024 and sell it today you would lose (25.00) from holding Guangzhou Boji Medical or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Biwin Storage Technology |
| Guangzhou Boji Medical |
Biwin Storage and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Guangzhou Boji
The main advantage of trading using opposite Biwin Storage and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji'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 |
| Guangzhou Boji vs. PetroChina Co Ltd | Guangzhou Boji vs. China Mobile Limited | Guangzhou Boji vs. Ping An Insurance | Guangzhou Boji vs. China Petroleum Chemical |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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