Correlation Between China Publishing and Bloomage Biotechnology
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By analyzing existing cross correlation between China Publishing Media and Bloomage Biotechnology Corp, you can compare the effects of market volatilities on China Publishing 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 China Publishing with a short position of Bloomage Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Bloomage Biotechnology.
Diversification Opportunities for China Publishing and Bloomage Biotechnology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Bloomage is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Bloomage Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomage Biotechnology and China Publishing 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 China Publishing Media 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 China Publishing i.e., China Publishing and Bloomage Biotechnology go up and down completely randomly.
Pair Corralation between China Publishing and Bloomage Biotechnology
Assuming the 90 days trading horizon China Publishing Media is expected to generate 0.81 times more return on investment than Bloomage Biotechnology. However, China Publishing Media is 1.23 times less risky than Bloomage Biotechnology. It trades about 0.19 of its potential returns per unit of risk. Bloomage Biotechnology Corp is currently generating about 0.13 per unit of risk. If you would invest 564.00 in China Publishing Media on September 16, 2024 and sell it today you would earn a total of 273.00 from holding China Publishing Media or generate 48.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Publishing Media vs. Bloomage Biotechnology Corp
Performance |
Timeline |
China Publishing Media |
Bloomage Biotechnology |
China Publishing and Bloomage Biotechnology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Publishing and Bloomage Biotechnology
The main advantage of trading using opposite China Publishing and Bloomage Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing 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.China Publishing vs. Ming Yang Smart | China Publishing vs. 159681 | China Publishing vs. 159005 | China Publishing vs. Loctek Ergonomic Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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