Correlation Between Medavail Holdings and Bimi International
Can any of the company-specific risk be diversified away by investing in both Medavail Holdings 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 Medavail Holdings and Bimi International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medavail Holdings and Bimi International Medical, you can compare the effects of market volatilities on Medavail Holdings 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 Medavail Holdings with a short position of Bimi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medavail Holdings and Bimi International.
Diversification Opportunities for Medavail Holdings and Bimi International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Medavail and Bimi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Medavail 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 Medavail Holdings 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 Medavail 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 Medavail Holdings i.e., Medavail Holdings and Bimi International go up and down completely randomly.
Pair Corralation between Medavail Holdings and Bimi International
If you would invest (100.00) in Bimi International Medical on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Bimi International Medical or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medavail Holdings vs. Bimi International Medical
Performance |
| Timeline |
| Medavail Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Bimi International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Medavail Holdings and Bimi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medavail Holdings and Bimi International
The main advantage of trading using opposite Medavail Holdings and Bimi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medavail Holdings 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.| Medavail Holdings vs. Allstar Health Brands | Medavail Holdings vs. China Jo Jo Drugstores | Medavail Holdings vs. SunLink Health Systems |
| Bimi International vs. PetMed Express | Bimi International vs. Allstar Health Brands | Bimi International vs. SunLink Health Systems | Bimi International vs. China Jo Jo Drugstores |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| 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 Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |