Correlation Between Fuda Alloy and Biwin Storage
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By analyzing existing cross correlation between Fuda Alloy Materials and Biwin Storage Technology, you can compare the effects of market volatilities on Fuda Alloy 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 Fuda Alloy with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuda Alloy and Biwin Storage.
Diversification Opportunities for Fuda Alloy and Biwin Storage
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fuda and Biwin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fuda Alloy Materials 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 Fuda Alloy 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 Fuda Alloy Materials 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 Fuda Alloy i.e., Fuda Alloy and Biwin Storage go up and down completely randomly.
Pair Corralation between Fuda Alloy and Biwin Storage
Assuming the 90 days trading horizon Fuda Alloy Materials is expected to generate 0.61 times more return on investment than Biwin Storage. However, Fuda Alloy Materials is 1.65 times less risky than Biwin Storage. It trades about 0.1 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about -0.1 per unit of risk. If you would invest 1,313 in Fuda Alloy Materials on September 9, 2024 and sell it today you would earn a total of 58.00 from holding Fuda Alloy Materials or generate 4.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fuda Alloy Materials vs. Biwin Storage Technology
Performance |
Timeline |
Fuda Alloy Materials |
Biwin Storage Technology |
Fuda Alloy and Biwin Storage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fuda Alloy and Biwin Storage
The main advantage of trading using opposite Fuda Alloy and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuda Alloy 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.Fuda Alloy vs. Ming Yang Smart | Fuda Alloy vs. 159681 | Fuda Alloy vs. 159005 | Fuda Alloy vs. Loctek Ergonomic Technology |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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