Correlation Between Bloomage Biotechnology and Shandong Longquan
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Bloomage Biotechnology and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Shandong Longquan.
Diversification Opportunities for Bloomage Biotechnology and Shandong Longquan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloomage and Shandong is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Shandong Longquan go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Shandong Longquan
Assuming the 90 days trading horizon Bloomage Biotechnology is expected to generate 24.44 times less return on investment than Shandong Longquan. In addition to that, Bloomage Biotechnology is 1.32 times more volatile than Shandong Longquan Pipeline. It trades about 0.0 of its total potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.05 per unit of volatility. If you would invest 413.00 in Shandong Longquan Pipeline on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Shandong Longquan Pipeline or generate 15.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| Bloomage Biotechnology |
| Shandong Longquan |
Bloomage Biotechnology and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Shandong Longquan
The main advantage of trading using opposite Bloomage Biotechnology and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan'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 |
| Shandong Longquan vs. Hunan Investment Group | Shandong Longquan vs. Xiandai Investment Co | Shandong Longquan vs. Ningbo Ligong Online | Shandong Longquan vs. Bank of Suzhou |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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