Correlation Between Fire Flower and Bimi International
Can any of the company-specific risk be diversified away by investing in both Fire Flower and Bimi International 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 Fire Flower and Bimi International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fire Flower Holdings and Bimi International Medical, you can compare the effects of market volatilities on Fire Flower and Bimi International 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 Fire Flower with a short position of Bimi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fire Flower and Bimi International.
Diversification Opportunities for Fire Flower and Bimi International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fire and Bimi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fire Flower Holdings and Bimi International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bimi International and Fire Flower 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 Fire Flower Holdings are associated (or correlated) with Bimi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bimi International has no effect on the direction of Fire Flower i.e., Fire Flower and Bimi International go up and down completely randomly.
Pair Corralation between Fire Flower and Bimi International
If you would invest 2.00 in Bimi International Medical on November 1, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fire Flower Holdings vs. Bimi International Medical
Performance |
| Timeline |
| Fire Flower Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bimi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fire Flower and Bimi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fire Flower and Bimi International
The main advantage of trading using opposite Fire Flower and Bimi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fire Flower position performs unexpectedly, Bimi International 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 Bimi International will offset losses from the drop in Bimi International's long position.| Fire Flower vs. Kiaro Holdings Corp | Fire Flower vs. Allstar Health Brands | Fire Flower vs. SunLink Health Systems |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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