Correlation Between Biwin Storage and Shanghai Rongtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Biwin Storage Technology and Shanghai Rongtai Health, you can compare the effects of market volatilities on Biwin Storage and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Shanghai Rongtai.
Diversification Opportunities for Biwin Storage and Shanghai Rongtai
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Biwin and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Biwin Storage i.e., Biwin Storage and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Biwin Storage and Shanghai Rongtai
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 1.63 times more return on investment than Shanghai Rongtai. However, Biwin Storage is 1.63 times more volatile than Shanghai Rongtai Health. It trades about 0.05 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.04 per unit of risk. If you would invest 4,630 in Biwin Storage Technology on August 25, 2024 and sell it today you would earn a total of 1,010 from holding Biwin Storage Technology or generate 21.81% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| Biwin Storage Technology |
| Shanghai Rongtai Health |
Biwin Storage and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Shanghai Rongtai
The main advantage of trading using opposite Biwin Storage and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Biwin Storage vs. Lutian Machinery Co | Biwin Storage vs. China Longyuan Power | Biwin Storage vs. Changshu Tongrun Auto | Biwin Storage vs. PetroChina Co Ltd |
| Shanghai Rongtai vs. Hoshine Silicon Ind | Shanghai Rongtai vs. Agricultural Bank of | Shanghai Rongtai vs. Huatian Hotel Group | Shanghai Rongtai vs. Liuzhou Chemical Industry |
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.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |