Correlation Between Allstar Health and Bimi International
Can any of the company-specific risk be diversified away by investing in both Allstar Health and Bimi International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Allstar Health and Bimi International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allstar Health Brands and Bimi International Medical, you can compare the effects of market volatilities on Allstar Health and Bimi International 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 Allstar Health with a short position of Bimi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allstar Health and Bimi International.
Diversification Opportunities for Allstar Health and Bimi International
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allstar and Bimi is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Allstar Health Brands and Bimi International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bimi International and Allstar Health 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 Allstar Health Brands are associated (or correlated) with Bimi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bimi International has no effect on the direction of Allstar Health i.e., Allstar Health and Bimi International go up and down completely randomly.
Pair Corralation between Allstar Health and Bimi International
Given the investment horizon of 90 days Allstar Health Brands is expected to generate 0.59 times more return on investment than Bimi International. However, Allstar Health Brands is 1.69 times less risky than Bimi International. It trades about 0.04 of its potential returns per unit of risk. Bimi International Medical is currently generating about -0.04 per unit of risk. If you would invest 0.07 in Allstar Health Brands on August 24, 2024 and sell it today you would lose (0.01) from holding Allstar Health Brands or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.8% |
| Values | Daily Returns |
Allstar Health Brands vs. Bimi International Medical
Performance |
| Timeline |
| Allstar Health Brands |
| Bimi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Allstar Health and Bimi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allstar Health and Bimi International
The main advantage of trading using opposite Allstar Health and Bimi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allstar Health position performs unexpectedly, Bimi International 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 Bimi International will offset losses from the drop in Bimi International's long position.| Allstar Health vs. Indo Global Exchange | Allstar Health vs. TPT Global Tech | Allstar Health vs. Valiant Eagle | Allstar Health vs. Sixty Six Oilfield |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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