Correlation Between AERWINS Technologies and Bonso Electronics
Can any of the company-specific risk be diversified away by investing in both AERWINS Technologies and Bonso Electronics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AERWINS Technologies and Bonso Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AERWINS Technologies and Bonso Electronics International, you can compare the effects of market volatilities on AERWINS Technologies and Bonso 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 AERWINS Technologies with a short position of Bonso Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AERWINS Technologies and Bonso Electronics.
Diversification Opportunities for AERWINS Technologies and Bonso Electronics
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between AERWINS and Bonso is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AERWINS Technologies and Bonso Electronics Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonso Electronics and AERWINS Technologies 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 AERWINS Technologies are associated (or correlated) with Bonso Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonso Electronics has no effect on the direction of AERWINS Technologies i.e., AERWINS Technologies and Bonso Electronics go up and down completely randomly.
Pair Corralation between AERWINS Technologies and Bonso Electronics
Given the investment horizon of 90 days AERWINS Technologies is expected to under-perform the Bonso Electronics. In addition to that, AERWINS Technologies is 1.36 times more volatile than Bonso Electronics International. It trades about -0.07 of its total potential returns per unit of risk. Bonso Electronics International is currently generating about 0.03 per unit of volatility. If you would invest 341.00 in Bonso Electronics International on August 27, 2024 and sell it today you would lose (82.00) from holding Bonso Electronics International or give up 24.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.46% |
| Values | Daily Returns |
AERWINS Technologies vs. Bonso Electronics Internationa
Performance |
| Timeline |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bonso Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AERWINS Technologies and Bonso Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AERWINS Technologies and Bonso Electronics
The main advantage of trading using opposite AERWINS Technologies and Bonso Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AERWINS Technologies position performs unexpectedly, Bonso 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 Bonso Electronics will offset losses from the drop in Bonso Electronics' long position.| AERWINS Technologies vs. Scientific Industries | AERWINS Technologies vs. Nanalysis Scientific Corp | AERWINS Technologies vs. DSG Global | AERWINS Technologies vs. Focus Universal |
| Bonso Electronics vs. Cepton Inc | Bonso Electronics vs. SaverOne 2014 Ltd | Bonso Electronics vs. Genasys | Bonso Electronics vs. Kraken Robotics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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