Correlation Between NAURA Technology and Biwin Storage
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By analyzing existing cross correlation between NAURA Technology Group and Biwin Storage Technology, you can compare the effects of market volatilities on NAURA Technology 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 NAURA Technology with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Biwin Storage.
Diversification Opportunities for NAURA Technology and Biwin Storage
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NAURA and Biwin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group 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 NAURA Technology 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 NAURA Technology Group 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 NAURA Technology i.e., NAURA Technology and Biwin Storage go up and down completely randomly.
Pair Corralation between NAURA Technology and Biwin Storage
Assuming the 90 days trading horizon NAURA Technology is expected to generate 3.02 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, NAURA Technology Group is 2.2 times less risky than Biwin Storage. It trades about 0.06 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,606 in Biwin Storage Technology on September 2, 2024 and sell it today you would earn a total of 4,371 from holding Biwin Storage Technology or generate 272.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.07% |
| Values | Daily Returns |
NAURA Technology Group vs. Biwin Storage Technology
Performance |
| Timeline |
| NAURA Technology |
| Biwin Storage Technology |
NAURA Technology and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Biwin Storage
The main advantage of trading using opposite NAURA Technology and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology 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.| NAURA Technology vs. Heren Health Co | NAURA Technology vs. Healthcare Co | NAURA Technology vs. Marssenger Kitchenware Co | NAURA Technology vs. Southchip Semiconductor Technology |
| Biwin Storage vs. Industrial and Commercial | Biwin Storage vs. Kweichow Moutai Co | Biwin Storage vs. Agricultural Bank of | Biwin Storage vs. China Mobile Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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