Correlation Between Qilu Bank and Bloomage Biotechnology
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By analyzing existing cross correlation between Qilu Bank Co and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Qilu Bank 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 Qilu Bank with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilu Bank and Bloomage Biotechnology.
Diversification Opportunities for Qilu Bank and Bloomage Biotechnology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qilu and Bloomage is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Qilu Bank 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 Qilu Bank 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 Qilu Bank 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 Qilu Bank i.e., Qilu Bank and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Qilu Bank and Bloomage Biotechnology
Assuming the 90 days trading horizon Qilu Bank Co is expected to under-perform the Bloomage Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Qilu Bank Co is 1.72 times less risky than Bloomage Biotechnology. The stock trades about -0.3 of its potential returns per unit of risk. The Bloomage Biotechnology Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,936 in Bloomage Biotechnology Corp on September 3, 2024 and sell it today you would lose (20.00) from holding Bloomage Biotechnology Corp or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilu Bank Co vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Qilu Bank |
| Bloomage Biotechnology |
Qilu Bank and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilu Bank and Bloomage Biotechnology
The main advantage of trading using opposite Qilu Bank and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilu Bank 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.| Qilu Bank vs. Wintao Communications Co | Qilu Bank vs. JCHX Mining Management | Qilu Bank vs. Jilin Jlu Communication | Qilu Bank vs. Anhui Jianghuai Automobile |
| Bloomage Biotechnology vs. Kangping Technology Co | Bloomage Biotechnology vs. HanS Laser Tech | Bloomage Biotechnology vs. Niutech Environment Technology | Bloomage Biotechnology vs. Keli Sensing Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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