Correlation Between Hengli Industrial and Bloomage Biotechnology
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By analyzing existing cross correlation between Hengli Industrial Development and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on Hengli Industrial and Bloomage Biotechnology 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 Hengli Industrial with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Bloomage Biotechnology.
Diversification Opportunities for Hengli Industrial and Bloomage Biotechnology
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and Bloomage is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Bloomage Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomage Biotechnology has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between Hengli Industrial and Bloomage Biotechnology
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 0.76 times more return on investment than Bloomage Biotechnology. However, Hengli Industrial Development is 1.32 times less risky than Bloomage Biotechnology. It trades about 0.11 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about 0.06 per unit of risk. If you would invest 168.00 in Hengli Industrial Development on September 24, 2024 and sell it today you would earn a total of 38.00 from holding Hengli Industrial Development or generate 22.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hengli Industrial Development vs. Bloomage Biotechnology Corp
Performance |
Timeline |
Hengli Industrial |
Bloomage Biotechnology |
Hengli Industrial and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hengli Industrial and Bloomage Biotechnology
The main advantage of trading using opposite Hengli Industrial and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Bloomage Biotechnology 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 Bloomage Biotechnology will offset losses from the drop in Bloomage Biotechnology's long position.Hengli Industrial vs. China Life Insurance | Hengli Industrial vs. Cinda Securities Co | Hengli Industrial vs. Piotech Inc A | Hengli Industrial vs. Dongxing Sec Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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