Correlation Between Biwin Storage and Dalian Thermal
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By analyzing existing cross correlation between Biwin Storage Technology and Dalian Thermal Power, you can compare the effects of market volatilities on Biwin Storage and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Dalian Thermal.
Diversification Opportunities for Biwin Storage and Dalian Thermal
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Biwin and Dalian is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Biwin Storage i.e., Biwin Storage and Dalian Thermal go up and down completely randomly.
Pair Corralation between Biwin Storage and Dalian Thermal
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Dalian Thermal. In addition to that, Biwin Storage is 1.1 times more volatile than Dalian Thermal Power. It trades about -0.01 of its total potential returns per unit of risk. Dalian Thermal Power is currently generating about 0.05 per unit of volatility. If you would invest 768.00 in Dalian Thermal Power on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Dalian Thermal Power or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Dalian Thermal Power
Performance |
| Timeline |
| Biwin Storage Technology |
| Dalian Thermal Power |
Biwin Storage and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Dalian Thermal
The main advantage of trading using opposite Biwin Storage and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Biwin Storage vs. Xinjiang Communications Construction | Biwin Storage vs. Guangzhou Haige Communications | Biwin Storage vs. Anhui Fuhuang Steel | Biwin Storage vs. Dongjiang Environmental Co |
| Dalian Thermal vs. Industrial and Commercial | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. China Construction Bank | Dalian Thermal vs. Bank of China |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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