Correlation Between Dongnan Electronics and Biwin Storage
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By analyzing existing cross correlation between Dongnan Electronics Co and Biwin Storage Technology, you can compare the effects of market volatilities on Dongnan Electronics 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 Dongnan Electronics with a short position of Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and Biwin Storage.
Diversification Opportunities for Dongnan Electronics and Biwin Storage
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongnan and Biwin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics 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 Dongnan Electronics 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 Dongnan Electronics 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 Dongnan Electronics i.e., Dongnan Electronics and Biwin Storage go up and down completely randomly.
Pair Corralation between Dongnan Electronics and Biwin Storage
Assuming the 90 days trading horizon Dongnan Electronics Co is expected to generate 0.88 times more return on investment than Biwin Storage. However, Dongnan Electronics Co is 1.14 times less risky than Biwin Storage. It trades about 0.07 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.04 per unit of risk. If you would invest 1,999 in Dongnan Electronics Co on September 5, 2024 and sell it today you would earn a total of 600.00 from holding Dongnan Electronics Co or generate 30.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. Biwin Storage Technology
Performance |
| Timeline |
| Dongnan Electronics |
| Biwin Storage Technology |
Dongnan Electronics and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and Biwin Storage
The main advantage of trading using opposite Dongnan Electronics and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics 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.| Dongnan Electronics vs. PKU HealthCare Corp | Dongnan Electronics vs. Heren Health Co | Dongnan Electronics vs. Hainan Mining Co | Dongnan Electronics vs. Humanwell Healthcare Group |
| Biwin Storage vs. Guangdong Shenglu Telecommunication | Biwin Storage vs. Sunwave Communications Co | Biwin Storage vs. Jiangnan Mould Plastic | Biwin Storage vs. Ningxia Building Materials |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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