Correlation Between Ningbo Tech and Bloomage Biotechnology
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Ningbo Tech and Bloomage Biotechnology 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 Ningbo Tech with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Bloomage Biotechnology.
Diversification Opportunities for Ningbo Tech and Bloomage Biotechnology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Bloomage is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and Ningbo Tech 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 Ningbo Tech Bank Co are associated (or correlated) with Bloomage Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomage Biotechnology has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Ningbo Tech and Bloomage Biotechnology
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 1.37 times more return on investment than Bloomage Biotechnology. However, Ningbo Tech is 1.37 times more volatile than Bloomage Biotechnology Corp. It trades about -0.17 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.34 per unit of risk. If you would invest 306.00 in Ningbo Tech Bank Co on October 17, 2024 and sell it today you would lose (27.00) from holding Ningbo Tech Bank Co or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Ningbo Tech Bank |
| Bloomage Biotechnology |
Ningbo Tech and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Bloomage Biotechnology
The main advantage of trading using opposite Ningbo Tech and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Bloomage Biotechnology 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 Bloomage Biotechnology will offset losses from the drop in Bloomage Biotechnology's long position.| Ningbo Tech vs. YiDong Electronics Technology | Ningbo Tech vs. Nantong Haixing Electronics | Ningbo Tech vs. Winner Medical Co | Ningbo Tech vs. Beijing YanDong MicroElectronic |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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