Correlation Between Zhejiang Juhua and Bloomage Biotechnology
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By analyzing existing cross correlation between Zhejiang Juhua Co and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Zhejiang Juhua 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 Zhejiang Juhua with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Juhua and Bloomage Biotechnology.
Diversification Opportunities for Zhejiang Juhua and Bloomage Biotechnology
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zhejiang and Bloomage is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Juhua 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 Zhejiang Juhua 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 Zhejiang Juhua 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 Zhejiang Juhua i.e., Zhejiang Juhua and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Zhejiang Juhua and Bloomage Biotechnology
Assuming the 90 days trading horizon Zhejiang Juhua Co is expected to generate 1.57 times more return on investment than Bloomage Biotechnology. However, Zhejiang Juhua is 1.57 times more volatile than Bloomage Biotechnology Corp. It trades about 0.15 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.15 per unit of risk. If you would invest 2,394 in Zhejiang Juhua Co on November 2, 2024 and sell it today you would earn a total of 173.00 from holding Zhejiang Juhua Co or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Juhua Co vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Zhejiang Juhua |
| Bloomage Biotechnology |
Zhejiang Juhua and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Juhua and Bloomage Biotechnology
The main advantage of trading using opposite Zhejiang Juhua and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Juhua 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.| Zhejiang Juhua vs. Jiahe Foods Industry | Zhejiang Juhua vs. Sino Platinum Metals Co | Zhejiang Juhua vs. Suzhou Weizhixiang Food | Zhejiang Juhua vs. Tianshan Aluminum Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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