Correlation Between Yes Optoelectronics and Biwin Storage
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By analyzing existing cross correlation between Yes Optoelectronics Co and Biwin Storage Technology, you can compare the effects of market volatilities on Yes Optoelectronics 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 Yes Optoelectronics with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Optoelectronics and Biwin Storage.
Diversification Opportunities for Yes Optoelectronics and Biwin Storage
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yes and Biwin is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yes Optoelectronics Co 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 Yes Optoelectronics 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 Yes Optoelectronics Co 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 Yes Optoelectronics i.e., Yes Optoelectronics and Biwin Storage go up and down completely randomly.
Pair Corralation between Yes Optoelectronics and Biwin Storage
Assuming the 90 days trading horizon Yes Optoelectronics is expected to generate 2.68 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Yes Optoelectronics Co is 1.3 times less risky than Biwin Storage. It trades about 0.03 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,570 in Biwin Storage Technology on October 17, 2024 and sell it today you would earn a total of 3,315 from holding Biwin Storage Technology or generate 128.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Optoelectronics Co vs. Biwin Storage Technology
Performance |
| Timeline |
| Yes Optoelectronics |
| Biwin Storage Technology |
Yes Optoelectronics and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Optoelectronics and Biwin Storage
The main advantage of trading using opposite Yes Optoelectronics and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Optoelectronics 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.| Yes Optoelectronics vs. Biwin Storage Technology | Yes Optoelectronics vs. PetroChina Co Ltd | Yes Optoelectronics vs. Industrial and Commercial | Yes Optoelectronics vs. China Construction Bank |
| Biwin Storage vs. Hefei Metalforming Mach | Biwin Storage vs. North Copper Shanxi | Biwin Storage vs. Gem Year Industrial Co | Biwin Storage vs. Hainan Mining Co |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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