Correlation Between Bimi International and 111
Can any of the company-specific risk be diversified away by investing in both Bimi International and 111 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 111 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 111 Inc, you can compare the effects of market volatilities on Bimi International and 111 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 111. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bimi International and 111.
Diversification Opportunities for Bimi International and 111
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bimi and 111 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bimi International Medical and 111 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 111 Inc 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 111. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 111 Inc has no effect on the direction of Bimi International i.e., Bimi International and 111 go up and down completely randomly.
Pair Corralation between Bimi International and 111
Given the investment horizon of 90 days Bimi International Medical is expected to under-perform the 111. In addition to that, Bimi International is 3.32 times more volatile than 111 Inc. It trades about -0.04 of its total potential returns per unit of risk. 111 Inc is currently generating about -0.07 per unit of volatility. If you would invest 214.00 in 111 Inc on August 24, 2024 and sell it today you would lose (153.00) from holding 111 Inc or give up 71.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.8% |
| Values | Daily Returns |
Bimi International Medical vs. 111 Inc
Performance |
| Timeline |
| Bimi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| 111 Inc |
Bimi International and 111 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bimi International and 111
The main advantage of trading using opposite Bimi International and 111 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bimi International position performs unexpectedly, 111 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 111 will offset losses from the drop in 111's long position.| Bimi International vs. PetMed Express | Bimi International vs. Leafly Holdings | Bimi International vs. Allstar Health Brands | Bimi International vs. SunLink Health Systems |
| 111 vs. Walgreens Boots Alliance | 111 vs. PetMed Express | 111 vs. China Jo Jo Drugstores | 111 vs. Leafly 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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