Correlation Between Biwin Storage and Allied Machinery
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By analyzing existing cross correlation between Biwin Storage Technology and Allied Machinery Co, you can compare the effects of market volatilities on Biwin Storage and Allied 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Allied Machinery.
Diversification Opportunities for Biwin Storage and Allied Machinery
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biwin and Allied is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Biwin Storage i.e., Biwin Storage and Allied Machinery go up and down completely randomly.
Pair Corralation between Biwin Storage and Allied Machinery
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 1.91 times more return on investment than Allied Machinery. However, Biwin Storage is 1.91 times more volatile than Allied Machinery Co. It trades about 0.07 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.01 per unit of risk. If you would invest 2,145 in Biwin Storage Technology on November 19, 2024 and sell it today you would earn a total of 4,170 from holding Biwin Storage Technology or generate 194.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Allied Machinery Co
Performance |
| Timeline |
| Biwin Storage Technology |
| Allied Machinery |
Biwin Storage and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Allied Machinery
The main advantage of trading using opposite Biwin Storage and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Allied 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Biwin Storage vs. Caihong Display Devices | Biwin Storage vs. Qingdao Choho Industrial | Biwin Storage vs. Sportsoul Co Ltd | Biwin Storage vs. Jahen Household Products |
| Allied Machinery vs. Hubeiyichang Transportation Group | Allied Machinery vs. Zhongshan Public Utilities | Allied Machinery vs. Jiangsu Yueda Investment | Allied Machinery vs. Hubei Geoway Investment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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