Correlation Between Biwin Storage and Kangping Technology
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By analyzing existing cross correlation between Biwin Storage Technology and Kangping Technology Co, you can compare the effects of market volatilities on Biwin Storage and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Kangping Technology.
Diversification Opportunities for Biwin Storage and Kangping Technology
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Biwin and Kangping is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Biwin Storage i.e., Biwin Storage and Kangping Technology go up and down completely randomly.
Pair Corralation between Biwin Storage and Kangping Technology
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Kangping Technology. In addition to that, Biwin Storage is 1.3 times more volatile than Kangping Technology Co. It trades about 0.0 of its total potential returns per unit of risk. Kangping Technology Co is currently generating about 0.03 per unit of volatility. If you would invest 2,047 in Kangping Technology Co on September 4, 2024 and sell it today you would earn a total of 319.00 from holding Kangping Technology Co or generate 15.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Kangping Technology Co
Performance |
| Timeline |
| Biwin Storage Technology |
| Kangping Technology |
Biwin Storage and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Kangping Technology
The main advantage of trading using opposite Biwin Storage and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Biwin Storage vs. Ningxia Younglight Chemicals | Biwin Storage vs. Dymatic Chemicals | Biwin Storage vs. Miracll Chemicals Co | Biwin Storage vs. Shenyang Chemical Industry |
| Kangping Technology vs. Biwin Storage Technology | Kangping Technology vs. PetroChina Co Ltd | Kangping Technology vs. Industrial and Commercial | Kangping Technology 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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