Correlation Between Sichuan Hebang and Bloomage Biotechnology
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Sichuan Hebang 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 Sichuan Hebang with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Bloomage Biotechnology.
Diversification Opportunities for Sichuan Hebang and Bloomage Biotechnology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sichuan and Bloomage is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and Sichuan Hebang 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 Sichuan Hebang Biotechnology 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 Sichuan Hebang i.e., Sichuan Hebang and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Bloomage Biotechnology
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to generate 0.69 times more return on investment than Bloomage Biotechnology. However, Sichuan Hebang Biotechnology is 1.46 times less risky than Bloomage Biotechnology. It trades about -0.05 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about -0.07 per unit of risk. If you would invest 314.00 in Sichuan Hebang Biotechnology on October 13, 2024 and sell it today you would lose (126.00) from holding Sichuan Hebang Biotechnology or give up 40.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Bloomage Biotechnology |
Sichuan Hebang and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Bloomage Biotechnology
The main advantage of trading using opposite Sichuan Hebang and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang 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.| Sichuan Hebang vs. Namchow Food Group | Sichuan Hebang vs. Fiberhome Telecommunication Technologies | Sichuan Hebang vs. V V Food | Sichuan Hebang vs. Xinjiang Tianrun Dairy |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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