Correlation Between Bank of China and Bloomage Biotechnology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Bloomage Biotechnology.
Diversification Opportunities for Bank of China and Bloomage Biotechnology
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Bloomage is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Bank of China and Bloomage Biotechnology
Assuming the 90 days trading horizon Bank of China is expected to generate 0.66 times more return on investment than Bloomage Biotechnology. However, Bank of China is 1.52 times less risky than Bloomage Biotechnology. It trades about 0.17 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.24 per unit of risk. If you would invest 523.00 in Bank of China on October 20, 2024 and sell it today you would earn a total of 22.00 from holding Bank of China or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Bank of China |
| Bloomage Biotechnology |
Bank of China and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Bloomage Biotechnology
The main advantage of trading using opposite Bank of China and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Shaanxi Construction Machinery | Bank of China vs. Digital China Information | Bank of China vs. Longmaster Information Tech | Bank of China vs. Ningbo Construction 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |