Correlation Between China Construction and Biwin Storage
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By analyzing existing cross correlation between China Construction Bank and Biwin Storage Technology, you can compare the effects of market volatilities on China Construction 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 Construction with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Biwin Storage.
Diversification Opportunities for China Construction and Biwin Storage
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Biwin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank 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 Construction 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 Construction Bank 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 Construction i.e., China Construction and Biwin Storage go up and down completely randomly.
Pair Corralation between China Construction and Biwin Storage
Assuming the 90 days trading horizon China Construction is expected to generate 19.16 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, China Construction Bank is 2.98 times less risky than Biwin Storage. It trades about 0.02 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,339 in Biwin Storage Technology on August 29, 2024 and sell it today you would earn a total of 1,337 from holding Biwin Storage Technology or generate 30.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Biwin Storage Technology
Performance |
| Timeline |
| China Construction Bank |
| Biwin Storage Technology |
China Construction and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Biwin Storage
The main advantage of trading using opposite China Construction and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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 Construction vs. Xinjiang Tianrun Dairy | China Construction vs. HaiXin Foods Co | China Construction vs. Juewei Food Co | China Construction vs. Suzhou Douson Drilling |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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