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
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fuda and Biwin is 0.81. 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 is expected to generate 17.59 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Fuda Alloy Materials is 2.16 times less risky than Biwin Storage. It trades about 0.01 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,606 in Biwin Storage Technology on September 6, 2024 and sell it today you would earn a total of 4,270 from holding Biwin Storage Technology or generate 265.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 97.9% |
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. Jilin Chemical Fibre | Fuda Alloy vs. Jinhui Liquor Co | Fuda Alloy vs. Changchun Faway Automobile | Fuda Alloy vs. Zhejiang Qianjiang Motorcycle |
Biwin Storage vs. Cultural Investment Holdings | Biwin Storage vs. Gome Telecom Equipment | Biwin Storage vs. Bus Online Co | Biwin Storage vs. Holitech Technology Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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