Correlation Between Bloomage Biotechnology and Guobo Electronics
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Guobo Electronics Co, you can compare the effects of market volatilities on Bloomage Biotechnology and Guobo Electronics 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 Guobo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Guobo Electronics.
Diversification Opportunities for Bloomage Biotechnology and Guobo Electronics
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloomage and Guobo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Guobo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guobo Electronics 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 Guobo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guobo Electronics has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Guobo Electronics go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Guobo Electronics
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Guobo Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.09 times less risky than Guobo Electronics. The stock trades about -0.06 of its potential returns per unit of risk. The Guobo Electronics Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,323 in Guobo Electronics Co on September 28, 2024 and sell it today you would lose (1,523) from holding Guobo Electronics Co or give up 24.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. Guobo Electronics Co
Performance |
| Timeline |
| Bloomage Biotechnology |
| Guobo Electronics |
Bloomage Biotechnology and Guobo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Guobo Electronics
The main advantage of trading using opposite Bloomage Biotechnology and Guobo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Guobo Electronics 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 Guobo Electronics will offset losses from the drop in Guobo Electronics' 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 |
| Guobo Electronics vs. Postal Savings Bank | Guobo Electronics vs. HeNan Splendor Science | Guobo Electronics vs. Hua Xia Bank | Guobo Electronics vs. Bloomage Biotechnology Corp |
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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