Correlation Between Bimi International and Leafly Holdings
Can any of the company-specific risk be diversified away by investing in both Bimi International and Leafly Holdings 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 Bimi International and Leafly Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bimi International Medical and Leafly Holdings, you can compare the effects of market volatilities on Bimi International and Leafly Holdings 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 Bimi International with a short position of Leafly Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimi International and Leafly Holdings.
Diversification Opportunities for Bimi International and Leafly Holdings
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bimi and Leafly is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bimi International Medical and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings and Bimi International 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 Bimi International Medical are associated (or correlated) with Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of Bimi International i.e., Bimi International and Leafly Holdings go up and down completely randomly.
Pair Corralation between Bimi International and Leafly Holdings
If you would invest 2.00 in Bimi International Medical on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Bimi International Medical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bimi International Medical vs. Leafly Holdings
Performance |
| Timeline |
| Bimi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Leafly Holdings |
Bimi International and Leafly Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimi International and Leafly Holdings
The main advantage of trading using opposite Bimi International and Leafly Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimi International position performs unexpectedly, Leafly Holdings 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 Leafly Holdings will offset losses from the drop in Leafly Holdings' long position.| Bimi International vs. PetMed Express | Bimi International vs. Leafly Holdings | Bimi International vs. Allstar Health Brands | Bimi International vs. SunLink Health Systems |
| Leafly Holdings vs. Leafly Holdings | Leafly Holdings vs. WM Technology | Leafly Holdings vs. Revelation Biosciences | Leafly Holdings vs. AEye Inc |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |