Correlation Between Biwin Storage and Chongqing Sulian
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By analyzing existing cross correlation between Biwin Storage Technology and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Biwin Storage and Chongqing Sulian 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 Biwin Storage with a short position of Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Chongqing Sulian.
Diversification Opportunities for Biwin Storage and Chongqing Sulian
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biwin and Chongqing is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic and Biwin Storage 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 Biwin Storage Technology are associated (or correlated) with Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Biwin Storage i.e., Biwin Storage and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Biwin Storage and Chongqing Sulian
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Chongqing Sulian. But the stock apears to be less risky and, when comparing its historical volatility, Biwin Storage Technology is 1.37 times less risky than Chongqing Sulian. The stock trades about -0.27 of its potential returns per unit of risk. The Chongqing Sulian Plastic is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,943 in Chongqing Sulian Plastic on September 12, 2024 and sell it today you would lose (10.00) from holding Chongqing Sulian Plastic or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Biwin Storage Technology |
| Chongqing Sulian Plastic |
Biwin Storage and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Chongqing Sulian
The main advantage of trading using opposite Biwin Storage and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| Biwin Storage vs. Gansu Jiu Steel | Biwin Storage vs. Shandong Mining Machinery | Biwin Storage vs. Aba Chemicals Corp | Biwin Storage vs. BlueFocus Communication Group |
| Chongqing Sulian vs. Lutian Machinery Co | Chongqing Sulian vs. PetroChina Co Ltd | Chongqing Sulian vs. Bank of China | Chongqing Sulian vs. Gansu Jiu Steel |
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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