Correlation Between Bloomage Biotechnology and Dirui Industrial
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Dirui Industrial Co, you can compare the effects of market volatilities on Bloomage Biotechnology and Dirui Industrial 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 Dirui Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Dirui Industrial.
Diversification Opportunities for Bloomage Biotechnology and Dirui Industrial
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bloomage and Dirui is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Dirui Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dirui Industrial 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 Dirui Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dirui Industrial has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Dirui Industrial go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Dirui Industrial
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Dirui Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.2 times less risky than Dirui Industrial. The stock trades about -0.05 of its potential returns per unit of risk. The Dirui Industrial Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,387 in Dirui Industrial Co on September 5, 2024 and sell it today you would lose (717.00) from holding Dirui Industrial Co or give up 30.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. Dirui Industrial Co
Performance |
| Timeline |
| Bloomage Biotechnology |
| Dirui Industrial |
Bloomage Biotechnology and Dirui Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Dirui Industrial
The main advantage of trading using opposite Bloomage Biotechnology and Dirui Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Dirui Industrial 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 Dirui Industrial will offset losses from the drop in Dirui Industrial's long position.| Bloomage Biotechnology vs. Zijin Mining Group | Bloomage Biotechnology vs. Baoshan Iron Steel | Bloomage Biotechnology vs. Rongsheng Petrochemical Co | Bloomage Biotechnology vs. Shandong Gold Mining |
| Dirui Industrial vs. Shenzhen Bioeasy Biotechnology | Dirui Industrial vs. Bloomage Biotechnology Corp | Dirui Industrial vs. Wintao Communications Co | Dirui Industrial vs. Eastern Communications Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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