Correlation Between Biwin Storage and Cinda Securities

Can any of the company-specific risk be diversified away by investing in both Biwin Storage and Cinda Securities at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Biwin Storage and Cinda Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Biwin Storage Technology and Cinda Securities Co, you can compare the effects of market volatilities on Biwin Storage and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Cinda Securities.

Diversification Opportunities for Biwin Storage and Cinda Securities

0.88

Correlation Coefficient

Biwin Storage  Cinda Securities

Very poor diversification

The 3 months correlation between Biwin and Cinda is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Biwin Storage i.e., Biwin Storage and Cinda Securities go up and down completely randomly.

Pair Corralation between Biwin Storage and Cinda Securities

Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 1.17 times more return on investment than Cinda Securities. However, Biwin Storage is 1.17 times more volatile than Cinda Securities Co. It trades about 0.06 of its potential returns per unit of risk. Cinda Securities Co is currently generating about 0.04 per unit of risk. If you would invest  6,488  in Biwin Storage Technology on December 29, 2024 and sell it today you would earn a total of  511.00  from holding Biwin Storage Technology or generate 7.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.31%
Values	Daily Returns

Biwin Storage Technology  vs.  Cinda Securities Co

Biwin Storage Technology

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Biwin Storage Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Biwin Storage may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cinda Securities

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cinda Securities Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cinda Securities may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Biwin Storage and Cinda Securities

The main advantage of trading using opposite Biwin Storage and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.

The idea behind Biwin Storage Technology and Cinda Securities Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.