Correlation Between Shandong Longquan and Bloomage Biotechnology
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Shandong Longquan 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 Shandong Longquan with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Bloomage Biotechnology.
Diversification Opportunities for Shandong Longquan and Bloomage Biotechnology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Bloomage is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and Shandong Longquan 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 Shandong Longquan Pipeline 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 Shandong Longquan i.e., Shandong Longquan and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Shandong Longquan and Bloomage Biotechnology
Assuming the 90 days trading horizon Shandong Longquan Pipeline is expected to generate 0.81 times more return on investment than Bloomage Biotechnology. However, Shandong Longquan Pipeline is 1.24 times less risky than Bloomage Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about 0.01 per unit of risk. If you would invest 469.00 in Shandong Longquan Pipeline on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Shandong Longquan Pipeline or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Shandong Longquan |
| Bloomage Biotechnology |
Shandong Longquan and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Bloomage Biotechnology
The main advantage of trading using opposite Shandong Longquan and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan 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.| Shandong Longquan vs. Hunan Investment Group | Shandong Longquan vs. Xiandai Investment Co | Shandong Longquan vs. Ningbo Ligong Online | Shandong Longquan vs. Bank of Suzhou |
| Bloomage Biotechnology vs. Kangping Technology Co | Bloomage Biotechnology vs. HanS Laser Tech | Bloomage Biotechnology vs. Niutech Environment Technology | Bloomage Biotechnology vs. Keli Sensing Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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