Correlation Between China State and Biwin Storage
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By analyzing existing cross correlation between China State Construction and Biwin Storage Technology, you can compare the effects of market volatilities on China State 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 China State with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Biwin Storage.
Diversification Opportunities for China State and Biwin Storage
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Biwin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Biwin Storage go up and down completely randomly.
Pair Corralation between China State and Biwin Storage
Assuming the 90 days trading horizon China State Construction is expected to generate 0.38 times more return on investment than Biwin Storage. However, China State Construction is 2.65 times less risky than Biwin Storage. It trades about 0.05 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about -0.01 per unit of risk. If you would invest 488.00 in China State Construction on August 29, 2024 and sell it today you would earn a total of 104.00 from holding China State Construction or generate 21.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Biwin Storage Technology
Performance |
| Timeline |
| China State Construction |
| Biwin Storage Technology |
China State and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Biwin Storage
The main advantage of trading using opposite China State and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Shenyang Chemical Industry | China State vs. Lianhe Chemical Technology | China State vs. North Huajin Chemical | China State vs. Maoming Petro Chemical Shihua |
| Biwin Storage vs. China State Construction | Biwin Storage vs. Huafa Industrial Co | Biwin Storage vs. China International Capital | Biwin Storage vs. Kweichow Moutai 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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