Correlation Between China Merchants and Bloomage Biotechnology
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Merchants Bank and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on China Merchants 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 China Merchants with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Bloomage Biotechnology.
Diversification Opportunities for China Merchants and Bloomage Biotechnology
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Bloomage is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and China Merchants 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 China Merchants Bank 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 China Merchants i.e., China Merchants and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between China Merchants and Bloomage Biotechnology
Assuming the 90 days trading horizon China Merchants Bank is expected to generate 0.61 times more return on investment than Bloomage Biotechnology. However, China Merchants Bank is 1.65 times less risky than Bloomage Biotechnology. It trades about 0.31 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.24 per unit of risk. If you would invest 3,802 in China Merchants Bank on October 20, 2024 and sell it today you would earn a total of 269.00 from holding China Merchants Bank or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| China Merchants Bank |
| Bloomage Biotechnology |
China Merchants and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Bloomage Biotechnology
The main advantage of trading using opposite China Merchants and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants 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.| China Merchants vs. Lingyuan Iron Steel | China Merchants vs. Panda Financial Holding | China Merchants vs. Sinocat Environmental Technology | China Merchants vs. Eit Environmental Development |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |