Correlation Between Long Yuan and Biwin Storage
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By analyzing existing cross correlation between Long Yuan Construction and Biwin Storage Technology, you can compare the effects of market volatilities on Long Yuan 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 Long Yuan with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Biwin Storage.
Diversification Opportunities for Long Yuan and Biwin Storage
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Long and Biwin is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction 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 Long Yuan 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 Long Yuan Construction 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 Long Yuan i.e., Long Yuan and Biwin Storage go up and down completely randomly.
Pair Corralation between Long Yuan and Biwin Storage
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the Biwin Storage. But the stock apears to be less risky and, when comparing its historical volatility, Long Yuan Construction is 2.04 times less risky than Biwin Storage. The stock trades about -0.02 of its potential returns per unit of risk. The Biwin Storage Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,258 in Biwin Storage Technology on October 10, 2024 and sell it today you would earn a total of 3,602 from holding Biwin Storage Technology or generate 159.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Long Yuan Construction vs. Biwin Storage Technology
Performance |
Timeline |
Long Yuan Construction |
Biwin Storage Technology |
Long Yuan and Biwin Storage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Long Yuan and Biwin Storage
The main advantage of trading using opposite Long Yuan and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan 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.Long Yuan vs. ButOne Information Corp | Long Yuan vs. Dymatic Chemicals | Long Yuan vs. Dawning Information Industry | Long Yuan vs. Guizhou Chanhen Chemical |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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