Correlation Between Citic Offshore and Biwin Storage
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By analyzing existing cross correlation between Citic Offshore Helicopter and Biwin Storage Technology, you can compare the effects of market volatilities on Citic Offshore 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 Citic Offshore with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Biwin Storage.
Diversification Opportunities for Citic Offshore and Biwin Storage
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citic and Biwin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter 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 Citic Offshore 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 Citic Offshore Helicopter 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 Citic Offshore i.e., Citic Offshore and Biwin Storage go up and down completely randomly.
Pair Corralation between Citic Offshore and Biwin Storage
Assuming the 90 days trading horizon Citic Offshore is expected to generate 1.01 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Citic Offshore Helicopter is 1.26 times less risky than Biwin Storage. It trades about 0.13 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,697 in Biwin Storage Technology on November 6, 2024 and sell it today you would earn a total of 253.00 from holding Biwin Storage Technology or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Offshore Helicopter vs. Biwin Storage Technology
Performance |
| Timeline |
| Citic Offshore Helicopter |
| Biwin Storage Technology |
Citic Offshore and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Offshore and Biwin Storage
The main advantage of trading using opposite Citic Offshore and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore 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.| Citic Offshore vs. Shandong Kuntai New | Citic Offshore vs. Malion New Materials | Citic Offshore vs. Shandong Sanyuan Biotechnology | Citic Offshore vs. Easyhome New Retail |
| Biwin Storage vs. Ningxia Younglight Chemicals | Biwin Storage vs. Dhc Software Co | Biwin Storage vs. Shandong Polymer Biochemicals | Biwin Storage vs. Thunder Software Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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