Correlation Between China Construction and Bloomage Biotechnology
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Bloomage Biotechnology.
Diversification Opportunities for China Construction and Bloomage Biotechnology
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Bloomage is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and China Construction 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 China Construction Bank 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 China Construction i.e., China Construction and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between China Construction and Bloomage Biotechnology
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.92 times more return on investment than Bloomage Biotechnology. However, China Construction Bank is 1.08 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 -0.15 per unit of risk. If you would invest 859.00 in China Construction Bank on November 2, 2024 and sell it today you would lose (5.00) from holding China Construction Bank or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| China Construction Bank |
| Bloomage Biotechnology |
China Construction and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Bloomage Biotechnology
The main advantage of trading using opposite China Construction and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.The idea behind China Construction Bank and Bloomage Biotechnology Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |