Correlation Between Bloomage Biotechnology and Ligao Foods
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Ligao Foods CoLtd, you can compare the effects of market volatilities on Bloomage Biotechnology and Ligao Foods 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 Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Ligao Foods.
Diversification Opportunities for Bloomage Biotechnology and Ligao Foods
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bloomage and Ligao is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Ligao Foods CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligao Foods CoLtd 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 Ligao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligao Foods CoLtd has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Ligao Foods go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Ligao Foods
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to generate 0.87 times more return on investment than Ligao Foods. However, Bloomage Biotechnology Corp is 1.15 times less risky than Ligao Foods. It trades about -0.05 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.05 per unit of risk. If you would invest 12,456 in Bloomage Biotechnology Corp on September 3, 2024 and sell it today you would lose (6,540) from holding Bloomage Biotechnology Corp or give up 52.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Bloomage Biotechnology |
| Ligao Foods CoLtd |
Bloomage Biotechnology and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Ligao Foods
The main advantage of trading using opposite Bloomage Biotechnology and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Ligao Foods 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 Ligao Foods will offset losses from the drop in Ligao Foods' 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 |
| Ligao Foods vs. Beijing Wantai Biological | Ligao Foods vs. Aluminum Corp of | Ligao Foods vs. COL Digital Publishing | Ligao Foods vs. Shaanxi Meineng Clean |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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