Correlation Between Wuhan Yangtze and Bloomage Biotechnology
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Bloomage Biotechnology.
Diversification Opportunities for Wuhan Yangtze and Bloomage Biotechnology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wuhan and Bloomage is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Bloomage Biotechnology
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the Bloomage Biotechnology. In addition to that, Wuhan Yangtze is 1.88 times more volatile than Bloomage Biotechnology Corp. It trades about -0.16 of its total potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.25 per unit of volatility. If you would invest 5,916 in Bloomage Biotechnology Corp on October 30, 2024 and sell it today you would lose (1,081) from holding Bloomage Biotechnology Corp or give up 18.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Bloomage Biotechnology |
Wuhan Yangtze and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Bloomage Biotechnology
The main advantage of trading using opposite Wuhan Yangtze and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Bus Online Co | Wuhan Yangtze vs. Holitech Technology Co | Wuhan Yangtze vs. Gome Telecom Equipment | Wuhan Yangtze vs. Cultural Investment Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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