Correlation Between Bloomage Biotechnology and Fujian Boss

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Can any of the company-specific risk be diversified away by investing in both Bloomage Biotechnology and Fujian Boss 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 Bloomage Biotechnology and Fujian Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomage Biotechnology Corp and Fujian Boss Software, you can compare the effects of market volatilities on Bloomage Biotechnology and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Fujian Boss.

Diversification Opportunities for Bloomage Biotechnology and Fujian Boss

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Bloomage and Fujian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Fujian Boss go up and down completely randomly.

Pair Corralation between Bloomage Biotechnology and Fujian Boss

Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to generate 0.83 times more return on investment than Fujian Boss. However, Bloomage Biotechnology Corp is 1.2 times less risky than Fujian Boss. It trades about -0.37 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.37 per unit of risk. If you would invest  5,832  in Bloomage Biotechnology Corp on October 10, 2024 and sell it today you would lose (830.00) from holding Bloomage Biotechnology Corp or give up 14.23% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bloomage Biotechnology Corp  vs.  Fujian Boss Software

 Performance 
       Timeline  
Bloomage Biotechnology 

Risk-Adjusted Performance

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Over the last 90 days Bloomage Biotechnology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Fujian Boss Software 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Fujian Boss Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fujian Boss is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bloomage Biotechnology and Fujian Boss Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bloomage Biotechnology and Fujian Boss

The main advantage of trading using opposite Bloomage Biotechnology and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.
The idea behind Bloomage Biotechnology Corp and Fujian Boss Software 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.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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