Correlation Between Shandong Gold and Bloomage Biotechnology
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By analyzing existing cross correlation between Shandong Gold Mining and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Shandong Gold 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 Gold with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Bloomage Biotechnology.
Diversification Opportunities for Shandong Gold and Bloomage Biotechnology
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shandong and Bloomage is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining 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 Gold 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 Gold Mining 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 Gold i.e., Shandong Gold and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Shandong Gold and Bloomage Biotechnology
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.7 times more return on investment than Bloomage Biotechnology. However, Shandong Gold Mining is 1.43 times less risky than Bloomage Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.01 per unit of risk. If you would invest 2,421 in Shandong Gold Mining on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Shandong Gold Mining or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Shandong Gold Mining |
| Bloomage Biotechnology |
Shandong Gold and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Bloomage Biotechnology
The main advantage of trading using opposite Shandong Gold and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold 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 Gold vs. Success Electronics | Shandong Gold vs. Sichuan Teway Food | Shandong Gold vs. Fuzhou Rockchip Electronics | Shandong Gold vs. Techshine Electronics Co |
| Bloomage Biotechnology vs. Zijin Mining Group | Bloomage Biotechnology vs. Baoshan Iron Steel | Bloomage Biotechnology vs. Shandong Gold Mining | Bloomage Biotechnology vs. Rongsheng Petrochemical 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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