Correlation Between Bimi International and PetMed Express
Can any of the company-specific risk be diversified away by investing in both Bimi International and PetMed Express 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 PetMed Express 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 PetMed Express, you can compare the effects of market volatilities on Bimi International and PetMed Express 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 PetMed Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimi International and PetMed Express.
Diversification Opportunities for Bimi International and PetMed Express
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bimi and PetMed is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bimi International Medical and PetMed Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetMed Express 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 PetMed Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetMed Express has no effect on the direction of Bimi International i.e., Bimi International and PetMed Express go up and down completely randomly.
Pair Corralation between Bimi International and PetMed Express
If you would invest 464.00 in PetMed Express on November 2, 2024 and sell it today you would earn a total of 38.00 from holding PetMed Express or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Bimi International Medical vs. PetMed Express
Performance |
| Timeline |
| Bimi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PetMed Express |
Bimi International and PetMed Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimi International and PetMed Express
The main advantage of trading using opposite Bimi International and PetMed Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimi International position performs unexpectedly, PetMed Express 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 PetMed Express will offset losses from the drop in PetMed Express' long position.| Bimi International vs. PetMed Express | Bimi International vs. Allstar Health Brands | Bimi International vs. SunLink Health Systems | Bimi International vs. China Jo Jo Drugstores |
| PetMed Express vs. High Tide | PetMed Express vs. China Jo Jo Drugstores | PetMed Express vs. Walgreens Boots Alliance | PetMed Express vs. 111 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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