Correlation Between Bloomage Biotechnology and Sanan Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bloomage Biotechnology Corp and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Bloomage Biotechnology and Sanan Optoelectronics 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 Bloomage Biotechnology with a short position of Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Sanan Optoelectronics.
Diversification Opportunities for Bloomage Biotechnology and Sanan Optoelectronics
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bloomage and Sanan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics and Bloomage Biotechnology 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 Bloomage Biotechnology Corp are associated (or correlated) with Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Bloomage Biotechnology and Sanan Optoelectronics
Assuming the 90 days trading horizon Bloomage Biotechnology is expected to generate 1.28 times less return on investment than Sanan Optoelectronics. In addition to that, Bloomage Biotechnology is 1.6 times more volatile than Sanan Optoelectronics Co. It trades about 0.07 of its total potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.15 per unit of volatility. If you would invest 1,012 in Sanan Optoelectronics Co on September 24, 2024 and sell it today you would earn a total of 273.00 from holding Sanan Optoelectronics Co or generate 26.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bloomage Biotechnology Corp vs. Sanan Optoelectronics Co
Performance |
Timeline |
Bloomage Biotechnology |
Sanan Optoelectronics |
Bloomage Biotechnology and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bloomage Biotechnology and Sanan Optoelectronics
The main advantage of trading using opposite Bloomage Biotechnology and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.The idea behind Bloomage Biotechnology Corp and Sanan Optoelectronics Co 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.
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |