Correlation Between Bionoid Pharma and China Infrastructure
Can any of the company-specific risk be diversified away by investing in both Bionoid Pharma and China Infrastructure 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 Bionoid Pharma and China Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionoid Pharma and China Infrastructure Construction, you can compare the effects of market volatilities on Bionoid Pharma and China Infrastructure 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 Bionoid Pharma with a short position of China Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionoid Pharma and China Infrastructure.
Diversification Opportunities for Bionoid Pharma and China Infrastructure
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bionoid and China is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bionoid Pharma and China Infrastructure Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Infrastructure and Bionoid Pharma 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 Bionoid Pharma are associated (or correlated) with China Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Infrastructure has no effect on the direction of Bionoid Pharma i.e., Bionoid Pharma and China Infrastructure go up and down completely randomly.
Pair Corralation between Bionoid Pharma and China Infrastructure
If you would invest 25.00 in Bionoid Pharma on August 29, 2024 and sell it today you would lose (14.00) from holding Bionoid Pharma or give up 56.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bionoid Pharma vs. China Infrastructure Construct
Performance |
| Timeline |
| Bionoid Pharma |
| China Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bionoid Pharma and China Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionoid Pharma and China Infrastructure
The main advantage of trading using opposite Bionoid Pharma and China Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionoid Pharma position performs unexpectedly, China Infrastructure 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 China Infrastructure will offset losses from the drop in China Infrastructure's long position.| Bionoid Pharma vs. Braskem SA Class | Bionoid Pharma vs. GMS Inc | Bionoid Pharma vs. Air Products and | Bionoid Pharma vs. National Vision Holdings |
| China Infrastructure vs. Medicine Man Technologies | China Infrastructure vs. Kona Gold Solutions | China Infrastructure vs. Green Thumb Industries | China Infrastructure vs. Cann American Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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