Correlation Between China Telecom and Biwin Storage
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By analyzing existing cross correlation between China Telecom Corp and Biwin Storage Technology, you can compare the effects of market volatilities on China Telecom 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 Telecom with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Biwin Storage.
Diversification Opportunities for China Telecom and Biwin Storage
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Biwin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp 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 Telecom 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 Telecom Corp 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 Telecom i.e., China Telecom and Biwin Storage go up and down completely randomly.
Pair Corralation between China Telecom and Biwin Storage
Assuming the 90 days trading horizon China Telecom is expected to generate 3.65 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, China Telecom Corp is 2.6 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 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,606 in Biwin Storage Technology on August 28, 2024 and sell it today you would earn a total of 4,185 from holding Biwin Storage Technology or generate 260.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.43% |
| Values | Daily Returns |
China Telecom Corp vs. Biwin Storage Technology
Performance |
| Timeline |
| China Telecom Corp |
| Biwin Storage Technology |
China Telecom and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Biwin Storage
The main advantage of trading using opposite China Telecom and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom 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 Telecom vs. Anji Foodstuff Co | China Telecom vs. Peoples Insurance of | China Telecom vs. New Hope Dairy | China Telecom vs. Ligao Foods CoLtd |
| Biwin Storage vs. Lutian Machinery Co | Biwin Storage vs. China Longyuan Power | Biwin Storage vs. Changshu Tongrun Auto | Biwin Storage vs. PetroChina Co Ltd |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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