Correlation Between Bloomage Biotechnology and Guangdong Marubi
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Bloomage Biotechnology and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Guangdong Marubi.
Diversification Opportunities for Bloomage Biotechnology and Guangdong Marubi
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloomage and Guangdong is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Guangdong Marubi
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Guangdong Marubi. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.25 times less risky than Guangdong Marubi. The stock trades about -0.24 of its potential returns per unit of risk. The Guangdong Marubi Biotechnology is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 3,343 in Guangdong Marubi Biotechnology on November 9, 2024 and sell it today you would lose (153.00) from holding Guangdong Marubi Biotechnology or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Bloomage Biotechnology |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Guangdong Marubi Bio |
Risk-Adjusted Performance
Weak
Weak | Strong |
Bloomage Biotechnology and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Guangdong Marubi
The main advantage of trading using opposite Bloomage Biotechnology and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.The idea behind Bloomage Biotechnology Corp and Guangdong Marubi Biotechnology 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.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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