Correlation Between Shenzhen Hifuture and Biwin Storage
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Biwin Storage Technology, you can compare the effects of market volatilities on Shenzhen Hifuture and Biwin Storage 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 Shenzhen Hifuture with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Biwin Storage.
Diversification Opportunities for Shenzhen Hifuture and Biwin Storage
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Biwin is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Biwin Storage Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biwin Storage Technology and Shenzhen Hifuture 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 Shenzhen Hifuture Electric are associated (or correlated) with Biwin Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biwin Storage Technology has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Biwin Storage go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Biwin Storage
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 2.14 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Shenzhen Hifuture Electric is 1.71 times less risky than Biwin Storage. It trades about 0.12 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,142 in Biwin Storage Technology on September 13, 2024 and sell it today you would earn a total of 1,888 from holding Biwin Storage Technology or generate 45.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.25% |
Values | Daily Returns |
Shenzhen Hifuture Electric vs. Biwin Storage Technology
Performance |
Timeline |
Shenzhen Hifuture |
Biwin Storage Technology |
Shenzhen Hifuture and Biwin Storage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Hifuture and Biwin Storage
The main advantage of trading using opposite Shenzhen Hifuture and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Biwin Storage 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 Biwin Storage will offset losses from the drop in Biwin Storage's long position.Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Xinya Electronic Co | Shenzhen Hifuture vs. Gansu Yasheng Industrial | Shenzhen Hifuture vs. Shenzhen Clou Electronics |
Biwin Storage vs. Nanjing Putian Telecommunications | Biwin Storage vs. Tianjin Realty Development | Biwin Storage vs. Kangyue Technology Co | Biwin Storage vs. Shenzhen Hifuture Electric |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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