Correlation Between Shanghai Material and Bloomage Biotechnology
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By analyzing existing cross correlation between Shanghai Material Trading and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Shanghai Material 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 Shanghai Material with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and Bloomage Biotechnology.
Diversification Opportunities for Shanghai Material and Bloomage Biotechnology
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Bloomage is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and Shanghai Material 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 Shanghai Material Trading 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 Shanghai Material i.e., Shanghai Material and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Shanghai Material and Bloomage Biotechnology
Assuming the 90 days trading horizon Shanghai Material Trading is expected to generate 1.32 times more return on investment than Bloomage Biotechnology. However, Shanghai Material is 1.32 times more volatile than Bloomage Biotechnology Corp. It trades about 0.03 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 820.00 in Shanghai Material Trading on October 26, 2024 and sell it today you would earn a total of 138.00 from holding Shanghai Material Trading or generate 16.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Material Trading vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Shanghai Material Trading |
| Bloomage Biotechnology |
Shanghai Material and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Material and Bloomage Biotechnology
The main advantage of trading using opposite Shanghai Material and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Material 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.| Shanghai Material vs. Industrial and Commercial | Shanghai Material vs. China Construction Bank | Shanghai Material vs. Agricultural Bank of | Shanghai Material vs. Bank of China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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