Correlation Between China Reform and Impulse Qingdao
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By analyzing existing cross correlation between China Reform Health and Impulse Qingdao Health, you can compare the effects of market volatilities on China Reform and Impulse Qingdao 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 China Reform with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reform and Impulse Qingdao.
Diversification Opportunities for China Reform and Impulse Qingdao
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Impulse is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Reform Health and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health and China Reform 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 China Reform Health are associated (or correlated) with Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of China Reform i.e., China Reform and Impulse Qingdao go up and down completely randomly.
Pair Corralation between China Reform and Impulse Qingdao
Assuming the 90 days trading horizon China Reform Health is expected to under-perform the Impulse Qingdao. In addition to that, China Reform is 1.11 times more volatile than Impulse Qingdao Health. It trades about -0.03 of its total potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.22 per unit of volatility. If you would invest 1,685 in Impulse Qingdao Health on August 29, 2024 and sell it today you would earn a total of 381.00 from holding Impulse Qingdao Health or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Reform Health vs. Impulse Qingdao Health
Performance |
| Timeline |
| China Reform Health |
| Impulse Qingdao Health |
China Reform and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reform and Impulse Qingdao
The main advantage of trading using opposite China Reform and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reform position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.| China Reform vs. Industrial and Commercial | China Reform vs. China Construction Bank | China Reform vs. Agricultural Bank of | China Reform vs. Bank of China |
| Impulse Qingdao vs. Agricultural Bank of | Impulse Qingdao vs. Industrial and Commercial | Impulse Qingdao vs. Bank of China | Impulse Qingdao vs. China Construction Bank |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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