Correlation Between Biwin Storage and China Petroleum
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By analyzing existing cross correlation between Biwin Storage Technology and China Petroleum Chemical, you can compare the effects of market volatilities on Biwin Storage and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and China Petroleum.
Diversification Opportunities for Biwin Storage and China Petroleum
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biwin and China is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Biwin Storage i.e., Biwin Storage and China Petroleum go up and down completely randomly.
Pair Corralation between Biwin Storage and China Petroleum
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 2.63 times more return on investment than China Petroleum. However, Biwin Storage is 2.63 times more volatile than China Petroleum Chemical. It trades about 0.05 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.01 per unit of risk. If you would invest 4,720 in Biwin Storage Technology on August 25, 2024 and sell it today you would earn a total of 920.00 from holding Biwin Storage Technology or generate 19.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. China Petroleum Chemical
Performance |
| Timeline |
| Biwin Storage Technology |
| China Petroleum Chemical |
Biwin Storage and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and China Petroleum
The main advantage of trading using opposite Biwin Storage and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Biwin Storage vs. Lutian Machinery Co | Biwin Storage vs. China Longyuan Power | Biwin Storage vs. Changshu Tongrun Auto | Biwin Storage vs. PetroChina Co Ltd |
| China Petroleum vs. Nantong Haixing Electronics | China Petroleum vs. CITIC Metal Co | China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Unigroup Guoxin Microelectronics |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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