Correlation Between Bloomage Biotechnology and Jiangsu Jinling
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Bloomage Biotechnology and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Jiangsu Jinling.
Diversification Opportunities for Bloomage Biotechnology and Jiangsu Jinling
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bloomage and Jiangsu is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Jiangsu Jinling
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Jiangsu Jinling. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.23 times less risky than Jiangsu Jinling. The stock trades about -0.07 of its potential returns per unit of risk. The Jiangsu Jinling Sports is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,258 in Jiangsu Jinling Sports on October 13, 2024 and sell it today you would lose (1,093) from holding Jiangsu Jinling Sports or give up 48.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Bloomage Biotechnology |
| Jiangsu Jinling Sports |
Bloomage Biotechnology and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Jiangsu Jinling
The main advantage of trading using opposite Bloomage Biotechnology and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.The idea behind Bloomage Biotechnology Corp and Jiangsu Jinling Sports pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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