Correlation Between Biwin Storage and China Life
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By analyzing existing cross correlation between Biwin Storage Technology and China Life Insurance, you can compare the effects of market volatilities on Biwin Storage and China Life 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 Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and China Life.
Diversification Opportunities for Biwin Storage and China Life
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Biwin and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life Insurance 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 Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of Biwin Storage i.e., Biwin Storage and China Life go up and down completely randomly.
Pair Corralation between Biwin Storage and China Life
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 2.27 times more return on investment than China Life. However, Biwin Storage is 2.27 times more volatile than China Life Insurance. It trades about 0.01 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.02 per unit of risk. If you would invest 7,625 in Biwin Storage Technology on August 31, 2024 and sell it today you would lose (1,733) from holding Biwin Storage Technology or give up 22.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. China Life Insurance
Performance |
| Timeline |
| Biwin Storage Technology |
| China Life Insurance |
Biwin Storage and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and China Life
The main advantage of trading using opposite Biwin Storage and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, China Life 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 Life will offset losses from the drop in China Life's long position.| Biwin Storage vs. Kweichow Moutai Co | Biwin Storage vs. NAURA Technology Group | Biwin Storage vs. APT Medical | Biwin Storage vs. Contemporary Amperex Technology |
| China Life vs. XinJiang GuoTong Pipeline | China Life vs. Shandong Hongchuang Aluminum | China Life vs. Zhejiang Yongjin Metal | China Life vs. China National Software |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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