Correlation Between Hefei Metalforming and Bloomage Biotechnology Co
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By analyzing existing cross correlation between Hefei Metalforming Mach and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Hefei Metalforming and Bloomage Biotechnology Co 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 Hefei Metalforming with a short position of Bloomage Biotechnology Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Bloomage Biotechnology Co.
Diversification Opportunities for Hefei Metalforming and Bloomage Biotechnology Co
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Bloomage is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology Co and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Bloomage Biotechnology Co. 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 Co has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Bloomage Biotechnology Co go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Bloomage Biotechnology Co
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 0.87 times more return on investment than Bloomage Biotechnology Co. However, Hefei Metalforming Mach is 1.15 times less risky than Bloomage Biotechnology Co. It trades about 0.06 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.04 per unit of risk. If you would invest 570.00 in Hefei Metalforming Mach on November 3, 2024 and sell it today you would earn a total of 111.00 from holding Hefei Metalforming Mach or generate 19.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Bloomage Biotechnology Co |
Hefei Metalforming and Bloomage Biotechnology Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Bloomage Biotechnology Co
The main advantage of trading using opposite Hefei Metalforming and Bloomage Biotechnology Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Bloomage Biotechnology Co 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 Co will offset losses from the drop in Bloomage Biotechnology Co's long position.| Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Kweichow Moutai Co | Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. China Mobile Limited |
| Bloomage Biotechnology Co vs. Zijin Mining Group | Bloomage Biotechnology Co vs. Wanhua Chemical Group | Bloomage Biotechnology Co vs. Baoshan Iron Steel | Bloomage Biotechnology Co vs. Shandong Gold Mining |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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