Correlation Between Biwin Storage and Bomin Electronics
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By analyzing existing cross correlation between Biwin Storage Technology and Bomin Electronics Co, you can compare the effects of market volatilities on Biwin Storage and Bomin Electronics 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 Bomin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Bomin Electronics.
Diversification Opportunities for Biwin Storage and Bomin Electronics
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biwin and Bomin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Bomin Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomin Electronics 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 Bomin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomin Electronics has no effect on the direction of Biwin Storage i.e., Biwin Storage and Bomin Electronics go up and down completely randomly.
Pair Corralation between Biwin Storage and Bomin Electronics
Assuming the 90 days trading horizon Biwin Storage Technology is expected to generate 0.82 times more return on investment than Bomin Electronics. However, Biwin Storage Technology is 1.22 times less risky than Bomin Electronics. It trades about -0.15 of its potential returns per unit of risk. Bomin Electronics Co is currently generating about -0.14 per unit of risk. If you would invest 6,972 in Biwin Storage Technology on October 25, 2024 and sell it today you would lose (713.00) from holding Biwin Storage Technology or give up 10.23% 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. Bomin Electronics Co
Performance |
| Timeline |
| Biwin Storage Technology |
| Bomin Electronics |
Biwin Storage and Bomin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Bomin Electronics
The main advantage of trading using opposite Biwin Storage and Bomin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage position performs unexpectedly, Bomin Electronics 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 Bomin Electronics will offset losses from the drop in Bomin Electronics' long position.| Biwin Storage vs. Offshore Oil Engineering | Biwin Storage vs. Hainan Mining Co | Biwin Storage vs. CSSC Offshore Marine | Biwin Storage vs. Chengtun Mining Group |
| Bomin Electronics vs. Kweichow Moutai Co | Bomin Electronics vs. NAURA Technology Group | Bomin Electronics vs. APT Medical | Bomin Electronics vs. BYD 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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