Correlation Between China Eastern and Bloomage Biotechnology
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By analyzing existing cross correlation between China Eastern Airlines and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on China Eastern 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 Eastern with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Bloomage Biotechnology.
Diversification Opportunities for China Eastern and Bloomage Biotechnology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Bloomage is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines 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 Eastern 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 Eastern Airlines 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 Eastern i.e., China Eastern and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between China Eastern and Bloomage Biotechnology
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 0.6 times more return on investment than Bloomage Biotechnology. However, China Eastern Airlines is 1.66 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 -0.06 per unit of risk. If you would invest 530.00 in China Eastern Airlines on October 27, 2024 and sell it today you would lose (142.00) from holding China Eastern Airlines or give up 26.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| China Eastern Airlines |
| Bloomage Biotechnology |
China Eastern and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Bloomage Biotechnology
The main advantage of trading using opposite China Eastern and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern 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 Eastern vs. Hubei Geoway Investment | China Eastern vs. Liaoning Chengda Biotechnology | China Eastern vs. Changchun BCHT Biotechnology | China Eastern vs. Jiangsu GDK Biotechnology |
| Bloomage Biotechnology vs. Jointo Energy Investment | Bloomage Biotechnology vs. Bus Online Co | Bloomage Biotechnology vs. Jahen Household Products | Bloomage Biotechnology vs. Nuode Investment 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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