Correlation Between GABY and Bimi International

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

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

Diversification Opportunities for GABY and Bimi International

0.0

Correlation Coefficient

GABY  Bimi International

Pay attention - limited upside

The 3 months correlation between GABY and Bimi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GABY Inc and Bimi International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bimi International and GABY 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 GABY Inc 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 GABY i.e., GABY and Bimi International go up and down completely randomly.

Pair Corralation between GABY and Bimi International

If you would invest (100.00) in Bimi International Medical on December 2, 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	100.0%
Values	Daily Returns

GABY Inc  vs.  Bimi International Medical

GABY Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days GABY Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, GABY is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 GABY and Bimi International

The main advantage of trading using opposite GABY and Bimi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GABY 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 GABY Inc 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.