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
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bionoid and China is -0.1. 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
Given the investment horizon of 90 days Bionoid Pharma is expected to generate 3.52 times more return on investment than China Infrastructure. However, Bionoid Pharma is 3.52 times more volatile than China Infrastructure Construction. It trades about 0.06 of its potential returns per unit of risk. China Infrastructure Construction is currently generating about 0.02 per unit of risk. If you would invest 100.00 in Bionoid Pharma on November 2, 2024 and sell it today you would lose (72.00) from holding Bionoid Pharma or give up 72.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.63% |
| 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. Weibo Corp | Bionoid Pharma vs. Tandem Diabetes Care | Bionoid Pharma vs. Cardinal Health | Bionoid Pharma vs. Space Communication |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| 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 | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |