Correlation Between Bloomage Biotechnology and Kangping Technology
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Kangping Technology Co, you can compare the effects of market volatilities on Bloomage Biotechnology and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Kangping Technology.
Diversification Opportunities for Bloomage Biotechnology and Kangping Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bloomage and Kangping is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Kangping Technology go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Kangping Technology
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Kangping Technology. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.25 times less risky than Kangping Technology. The stock trades about 0.0 of its potential returns per unit of risk. The Kangping Technology Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,026 in Kangping Technology Co on September 3, 2024 and sell it today you would earn a total of 354.00 from holding Kangping Technology Co or generate 17.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. Kangping Technology Co
Performance |
| Timeline |
| Bloomage Biotechnology |
| Kangping Technology |
Bloomage Biotechnology and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Kangping Technology
The main advantage of trading using opposite Bloomage Biotechnology and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology'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 |
| Kangping Technology vs. Cultural Investment Holdings | Kangping Technology vs. Gome Telecom Equipment | Kangping Technology vs. Bus Online Co | Kangping Technology vs. Holitech Technology 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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