Correlation Between Allstar Health and Bimi International

Can any of the company-specific risk be diversified away by investing in both Allstar Health and Bimi 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 Allstar Health and Bimi International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allstar Health Brands and Bimi International Medical, you can compare the effects of market volatilities on Allstar Health and Bimi 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 Allstar Health with a short position of Bimi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allstar Health and Bimi International.

Diversification Opportunities for Allstar Health and Bimi International

0.0

Correlation Coefficient

Allstar Health  Bimi International

Pay attention - limited upside

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

Pair Corralation between Allstar Health and Bimi International

If you would invest (100.00) in Bimi International Medical on November 29, 2024 and sell it today you would earn a total of  100.00  from holding Bimi International Medical or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Allstar Health Brands  vs.  Bimi International Medical

Allstar Health Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allstar Health Brands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bimi International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bimi International Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Bimi International is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Allstar Health and Bimi International

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

The idea behind Allstar Health Brands and Bimi International Medical 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.