Correlation Between Bloomage Biotechnology Co and MayAir Technology
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and MayAir Technology Co, you can compare the effects of market volatilities on Bloomage Biotechnology Co and MayAir Technology 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 Co with a short position of MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology Co and MayAir Technology.
Diversification Opportunities for Bloomage Biotechnology Co and MayAir Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bloomage and MayAir is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology and Bloomage Biotechnology Co 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 MayAir Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MayAir Technology has no effect on the direction of Bloomage Biotechnology Co i.e., Bloomage Biotechnology Co and MayAir Technology go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology Co and MayAir Technology
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the MayAir Technology. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.17 times less risky than MayAir Technology. The stock trades about -0.07 of its potential returns per unit of risk. The MayAir Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,720 in MayAir Technology Co on November 7, 2024 and sell it today you would lose (371.00) from holding MayAir Technology Co or give up 9.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomage Biotechnology Corp vs. MayAir Technology Co
Performance |
| Timeline |
| Bloomage Biotechnology Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MayAir Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bloomage Biotechnology Co and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology Co and MayAir Technology
The main advantage of trading using opposite Bloomage Biotechnology Co and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology Co position performs unexpectedly, MayAir Technology 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 MayAir Technology will offset losses from the drop in MayAir Technology's long position.The idea behind Bloomage Biotechnology Corp and MayAir Technology 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.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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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