Correlation Between Bloomage Biotechnology and Wuhan Hvsen
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Bloomage Biotechnology and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Wuhan Hvsen.
Diversification Opportunities for Bloomage Biotechnology and Wuhan Hvsen
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloomage and Wuhan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Wuhan Hvsen
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.08 times less risky than Wuhan Hvsen. The stock trades about -0.15 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,245 in Wuhan Hvsen Biotechnology on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Wuhan Hvsen Biotechnology or generate 1.77% 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. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Bloomage Biotechnology |
| Wuhan Hvsen Biotechnology |
Bloomage Biotechnology and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Wuhan Hvsen
The main advantage of trading using opposite Bloomage Biotechnology and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Bloomage Biotechnology vs. Zijin Mining Group | Bloomage Biotechnology vs. Wanhua Chemical Group | Bloomage Biotechnology vs. Baoshan Iron Steel | Bloomage Biotechnology vs. Rongsheng Petrochemical Co |
| Wuhan Hvsen vs. Cultural Investment Holdings | Wuhan Hvsen vs. Gome Telecom Equipment | Wuhan Hvsen vs. Holitech Technology Co | Wuhan Hvsen vs. Zotye Automobile 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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