Correlation Between Progressive Care and Bimi International
Can any of the company-specific risk be diversified away by investing in both Progressive Care 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 Progressive Care and Bimi International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progressive Care and Bimi International Medical, you can compare the effects of market volatilities on Progressive Care 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 Progressive Care with a short position of Bimi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Care and Bimi International.
Diversification Opportunities for Progressive Care and Bimi International
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Progressive and Bimi is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Care and Bimi International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bimi International and Progressive Care 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 Progressive Care 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 Progressive Care i.e., Progressive Care and Bimi International go up and down completely randomly.
Pair Corralation between Progressive Care 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 | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progressive Care vs. Bimi International Medical
Performance |
| Timeline |
| Progressive Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bimi International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Progressive Care and Bimi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progressive Care and Bimi International
The main advantage of trading using opposite Progressive Care and Bimi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive Care 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.The idea behind Progressive Care and Bimi International Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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