Correlation Between Bloomage Biotechnology and Shanxi Lanhua
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on Bloomage Biotechnology and Shanxi Lanhua 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 Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Shanxi Lanhua.
Diversification Opportunities for Bloomage Biotechnology and Shanxi Lanhua
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bloomage and Shanxi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci 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 Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Shanxi Lanhua
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Shanxi Lanhua. In addition to that, Bloomage Biotechnology is 1.26 times more volatile than Shanxi Lanhua Sci Tech. It trades about -0.01 of its total potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about 0.06 per unit of volatility. If you would invest 837.00 in Shanxi Lanhua Sci Tech on September 2, 2024 and sell it today you would earn a total of 19.00 from holding Shanxi Lanhua Sci Tech or generate 2.27% 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. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| Bloomage Biotechnology |
| Shanxi Lanhua Sci |
Bloomage Biotechnology and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Shanxi Lanhua
The main advantage of trading using opposite Bloomage Biotechnology and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua's long position.| Bloomage Biotechnology vs. Zijin Mining Group | Bloomage Biotechnology vs. Baoshan Iron Steel | Bloomage Biotechnology vs. Shandong Gold Mining | Bloomage Biotechnology vs. Rongsheng Petrochemical Co |
| Shanxi Lanhua vs. Bloomage Biotechnology Corp | Shanxi Lanhua vs. Xinjiang Communications Construction | Shanxi Lanhua vs. Guangdong Advertising Co | Shanxi Lanhua vs. Changchun BCHT Biotechnology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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