Correlation Between Bloomage Biotechnology and XiaMen HongXin
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Bloomage Biotechnology and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and XiaMen HongXin.
Diversification Opportunities for Bloomage Biotechnology and XiaMen HongXin
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bloomage and XiaMen is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and XiaMen HongXin
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to generate 0.31 times more return on investment than XiaMen HongXin. However, Bloomage Biotechnology Corp is 3.28 times less risky than XiaMen HongXin. It trades about -0.23 of its potential returns per unit of risk. XiaMen HongXin Electron tech is currently generating about -0.08 per unit of risk. If you would invest 5,242 in Bloomage Biotechnology Corp on October 30, 2024 and sell it today you would lose (407.00) from holding Bloomage Biotechnology Corp or give up 7.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Bloomage Biotechnology |
| XiaMen HongXin Electron |
Bloomage Biotechnology and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and XiaMen HongXin
The main advantage of trading using opposite Bloomage Biotechnology and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.The idea behind Bloomage Biotechnology Corp and XiaMen HongXin Electron tech 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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