Correlation Between Bloomage Biotechnology and Eastern Communications
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By analyzing existing cross correlation between Bloomage Biotechnology Corp and Eastern Communications Co, you can compare the effects of market volatilities on Bloomage Biotechnology and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Eastern Communications.
Diversification Opportunities for Bloomage Biotechnology and Eastern Communications
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloomage and Eastern is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Eastern Communications go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Eastern Communications
Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Eastern Communications. In addition to that, Bloomage Biotechnology is 1.15 times more volatile than Eastern Communications Co. It trades about -0.06 of its total potential returns per unit of risk. Eastern Communications Co is currently generating about 0.01 per unit of volatility. If you would invest 41.00 in Eastern Communications Co on October 27, 2024 and sell it today you would lose (1.00) from holding Eastern Communications Co or give up 2.44% 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. Eastern Communications Co
Performance |
| Timeline |
| Bloomage Biotechnology |
| Eastern Communications |
Bloomage Biotechnology and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomage Biotechnology and Eastern Communications
The main advantage of trading using opposite Bloomage Biotechnology and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Bloomage Biotechnology vs. Jointo Energy Investment | Bloomage Biotechnology vs. Bus Online Co | Bloomage Biotechnology vs. Jahen Household Products | Bloomage Biotechnology vs. Nuode Investment Co |
| Eastern Communications vs. Bus Online Co | Eastern Communications vs. Holitech Technology Co | Eastern Communications vs. Gome Telecom Equipment | Eastern Communications vs. Cultural Investment Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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