Correlation Between Bloomage Biotechnology and Gem Year
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Gem Year Industrial Co, you can compare the effects of market volatilities on Bloomage Biotechnology and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Gem Year.
Diversification Opportunities for Bloomage Biotechnology and Gem Year
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bloomage and Gem is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Gem Year go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Gem Year
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Gem Year. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.21 times less risky than Gem Year. The stock trades about -0.38 of its potential returns per unit of risk. The Gem Year Industrial Co is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 487.00 in Gem Year Industrial Co on October 11, 2024 and sell it today you would lose (63.00) from holding Gem Year Industrial Co or give up 12.94% 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. Gem Year Industrial Co
Performance |
| Timeline |
| Bloomage Biotechnology |
| Gem Year Industrial |
Bloomage Biotechnology and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Gem Year
The main advantage of trading using opposite Bloomage Biotechnology and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.The idea behind Bloomage Biotechnology Corp and Gem Year Industrial Co 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.
| Gem Year vs. Bloomage Biotechnology Corp | Gem Year vs. Sichuan Hebang Biotechnology | Gem Year vs. Dezhan HealthCare Co | Gem Year vs. Shanghai Rongtai Health |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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