Correlation Between Shandong Sino and Bloomage Biotechnology
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By analyzing existing cross correlation between Shandong Sino Agri United and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Shandong Sino 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 Sino with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sino and Bloomage Biotechnology.
Diversification Opportunities for Shandong Sino and Bloomage Biotechnology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Bloomage is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sino Agri United 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 Sino 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 Sino Agri United 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 Sino i.e., Shandong Sino and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Shandong Sino and Bloomage Biotechnology
Assuming the 90 days trading horizon Shandong Sino Agri United is expected to generate 2.18 times more return on investment than Bloomage Biotechnology. However, Shandong Sino is 2.18 times more volatile than Bloomage Biotechnology Corp. It trades about 0.1 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.11 per unit of risk. If you would invest 1,578 in Shandong Sino Agri United on September 13, 2024 and sell it today you would earn a total of 142.00 from holding Shandong Sino Agri United or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sino Agri United vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Shandong Sino Agri |
| Bloomage Biotechnology |
Shandong Sino and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sino and Bloomage Biotechnology
The main advantage of trading using opposite Shandong Sino and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sino 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 Sino vs. Harbin Air Conditioning | Shandong Sino vs. Jiujiang Shanshui Technology | Shandong Sino vs. Jiangsu Yanghe Brewery | Shandong Sino vs. Olympic Circuit Technology |
| Bloomage Biotechnology vs. Tongyu Communication | Bloomage Biotechnology vs. Fujian Anjoy Foods | Bloomage Biotechnology vs. Guilin Seamild Foods | Bloomage Biotechnology vs. Great Sun Foods Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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