Correlation Between Bloomage Biotechnology and Shenwu Energy
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Shenwu Energy Saving, you can compare the effects of market volatilities on Bloomage Biotechnology and Shenwu Energy 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 Bloomage Biotechnology with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Shenwu Energy.
Diversification Opportunities for Bloomage Biotechnology and Shenwu Energy
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloomage and Shenwu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and Bloomage Biotechnology 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 Bloomage Biotechnology Corp are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Shenwu Energy go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Shenwu Energy
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to generate 1.31 times more return on investment than Shenwu Energy. However, Bloomage Biotechnology is 1.31 times more volatile than Shenwu Energy Saving. It trades about 0.01 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about -0.19 per unit of risk. If you would invest 5,936 in Bloomage Biotechnology Corp on September 3, 2024 and sell it today you would lose (20.00) from holding Bloomage Biotechnology Corp or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. Shenwu Energy Saving
Performance |
| Timeline |
| Bloomage Biotechnology |
| Shenwu Energy Saving |
Bloomage Biotechnology and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Shenwu Energy
The main advantage of trading using opposite Bloomage Biotechnology and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Bloomage Biotechnology vs. Kangping Technology Co | Bloomage Biotechnology vs. HanS Laser Tech | Bloomage Biotechnology vs. Niutech Environment Technology | Bloomage Biotechnology vs. Keli Sensing Technology |
| Shenwu Energy vs. Shanghai Action Education | Shenwu Energy vs. Offcn Education Technology | Shenwu Energy vs. Hubeiyichang Transportation Group | Shenwu Energy vs. Shanghai Broadband 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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