Correlation Between Bloomage Biotechnology and Markor International

Can any of the company-specific risk be diversified away by investing in both Bloomage Biotechnology and Markor 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 Bloomage Biotechnology and Markor International 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 Markor International Home, you can compare the effects of market volatilities on Bloomage Biotechnology and Markor 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 Bloomage Biotechnology with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Markor International.

Diversification Opportunities for Bloomage Biotechnology and Markor International

0.4

Correlation Coefficient

Bloomage Biotechnology  Markor International

Very weak diversification

The 3 months correlation between Bloomage and Markor is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Markor International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markor International Home 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 Markor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markor International Home has no effect on the direction of Bloomage Biotechnology i.e., Bloomage Biotechnology and Markor International go up and down completely randomly.

Pair Corralation between Bloomage Biotechnology and Markor International

Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Markor International. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.93 times less risky than Markor International. The stock trades about -0.12 of its potential returns per unit of risk. The Markor International Home is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  169.00  in Markor International Home on October 24, 2024 and sell it today you would earn a total of  2.00  from holding Markor International Home or generate 1.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bloomage Biotechnology Corp  vs.  Markor International Home

Bloomage Biotechnology

Risk-Adjusted Performance

0 of 100

Very Weak

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.

Markor International Home

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Markor International Home are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Markor International may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Bloomage Biotechnology and Markor International

The main advantage of trading using opposite Bloomage Biotechnology and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology position performs unexpectedly, Markor 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 Markor International will offset losses from the drop in Markor International's long position.

The idea behind Bloomage Biotechnology Corp and Markor International Home 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..