Correlation Between Hoshine Silicon and Bloomage Biotechnology
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By analyzing existing cross correlation between Hoshine Silicon Ind and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Hoshine Silicon 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 Hoshine Silicon with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Bloomage Biotechnology.
Diversification Opportunities for Hoshine Silicon and Bloomage Biotechnology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Bloomage is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and Hoshine Silicon 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 Hoshine Silicon Ind 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 Hoshine Silicon i.e., Hoshine Silicon and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Bloomage Biotechnology
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Bloomage Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.43 times less risky than Bloomage Biotechnology. The stock trades about -0.47 of its potential returns per unit of risk. The Bloomage Biotechnology Corp is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 5,400 in Bloomage Biotechnology Corp on October 24, 2024 and sell it today you would lose (442.00) from holding Bloomage Biotechnology Corp or give up 8.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Bloomage Biotechnology Corp
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Bloomage Biotechnology |
Hoshine Silicon and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Bloomage Biotechnology
The main advantage of trading using opposite Hoshine Silicon and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon 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.| Hoshine Silicon vs. Shandong Longquan Pipeline | Hoshine Silicon vs. Anhui Jianghuai Automobile | Hoshine Silicon vs. Shanghai Shuixing Home | Hoshine Silicon vs. Iat Automobile 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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