Correlation Between Shenyang Chemical and Biwin Storage
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By analyzing existing cross correlation between Shenyang Chemical Industry and Biwin Storage Technology, you can compare the effects of market volatilities on Shenyang Chemical 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 Shenyang Chemical with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Biwin Storage.
Diversification Opportunities for Shenyang Chemical and Biwin Storage
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Biwin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry 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 Shenyang Chemical 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 Shenyang Chemical Industry 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 Shenyang Chemical i.e., Shenyang Chemical and Biwin Storage go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Biwin Storage
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to generate 0.64 times more return on investment than Biwin Storage. However, Shenyang Chemical Industry is 1.55 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 0.0 per unit of risk. If you would invest 416.00 in Shenyang Chemical Industry on September 4, 2024 and sell it today you would lose (32.00) from holding Shenyang Chemical Industry or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Biwin Storage Technology
Performance |
| Timeline |
| Shenyang Chemical |
| Biwin Storage Technology |
Shenyang Chemical and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Biwin Storage
The main advantage of trading using opposite Shenyang Chemical and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical 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.| Shenyang Chemical vs. Zijin Mining Group | Shenyang Chemical vs. Wanhua Chemical Group | Shenyang Chemical vs. Baoshan Iron Steel | Shenyang Chemical vs. Shandong Gold Mining |
| Biwin Storage vs. Ningxia Younglight Chemicals | Biwin Storage vs. Dymatic Chemicals | Biwin Storage vs. Miracll Chemicals Co | Biwin Storage vs. Shenyang Chemical Industry |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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