Correlation Between Biwin Storage and Nuode Investment
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By analyzing existing cross correlation between Biwin Storage Technology and Nuode Investment Co, you can compare the effects of market volatilities on Biwin Storage and Nuode Investment 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 Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Nuode Investment.
Diversification Opportunities for Biwin Storage and Nuode Investment
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biwin and Nuode is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment 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 Nuode Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuode Investment has no effect on the direction of Biwin Storage i.e., Biwin Storage and Nuode Investment go up and down completely randomly.
Pair Corralation between Biwin Storage and Nuode Investment
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Nuode Investment. But the stock apears to be less risky and, when comparing its historical volatility, Biwin Storage Technology is 1.22 times less risky than Nuode Investment. The stock trades about -0.27 of its potential returns per unit of risk. The Nuode Investment Co is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 522.00 in Nuode Investment Co on September 12, 2024 and sell it today you would lose (63.00) from holding Nuode Investment Co or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Nuode Investment Co
Performance |
| Timeline |
| Biwin Storage Technology |
| Nuode Investment |
Biwin Storage and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Nuode Investment
The main advantage of trading using opposite Biwin Storage and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Nuode Investment 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 Nuode Investment will offset losses from the drop in Nuode Investment's long position.| Biwin Storage vs. Gansu Jiu Steel | Biwin Storage vs. Shandong Mining Machinery | Biwin Storage vs. Aba Chemicals Corp | Biwin Storage vs. BlueFocus Communication Group |
| Nuode Investment vs. Agricultural Bank of | Nuode Investment vs. Industrial and Commercial | Nuode Investment vs. Bank of China | Nuode Investment vs. PetroChina Co Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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