Correlation Between BIT Mining and Wilmar International
Can any of the company-specific risk be diversified away by investing in both BIT Mining and Wilmar International 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 BIT Mining and Wilmar International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Mining and Wilmar International Limited, you can compare the effects of market volatilities on BIT Mining and Wilmar International 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 BIT Mining with a short position of Wilmar International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Mining and Wilmar International.
Diversification Opportunities for BIT Mining and Wilmar International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIT and Wilmar is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding BIT Mining and Wilmar International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmar International and BIT Mining 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 BIT Mining are associated (or correlated) with Wilmar International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmar International has no effect on the direction of BIT Mining i.e., BIT Mining and Wilmar International go up and down completely randomly.
Pair Corralation between BIT Mining and Wilmar International
Given the investment horizon of 90 days BIT Mining is expected to under-perform the Wilmar International. In addition to that, BIT Mining is 1.35 times more volatile than Wilmar International Limited. It trades about -0.01 of its total potential returns per unit of risk. Wilmar International Limited is currently generating about 0.03 per unit of volatility. If you would invest 218.00 in Wilmar International Limited on November 5, 2024 and sell it today you would earn a total of 8.00 from holding Wilmar International Limited or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.71% |
| Values | Daily Returns |
BIT Mining vs. Wilmar International Limited
Performance |
| Timeline |
| BIT Mining |
| Wilmar International |
BIT Mining and Wilmar International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Mining and Wilmar International
The main advantage of trading using opposite BIT Mining and Wilmar International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Mining position performs unexpectedly, Wilmar International 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 Wilmar International will offset losses from the drop in Wilmar International's long position.| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
| Wilmar International vs. Fresh Del Monte | Wilmar International vs. Limoneira Co | Wilmar International vs. Brasilagro Adr | Wilmar International vs. Alico Inc |
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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