Correlation Between Beijing Shunxin and Impulse Qingdao
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By analyzing existing cross correlation between Beijing Shunxin Agriculture and Impulse Qingdao Health, you can compare the effects of market volatilities on Beijing Shunxin 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 Beijing Shunxin with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Impulse Qingdao.
Diversification Opportunities for Beijing Shunxin and Impulse Qingdao
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Impulse is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture 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 Beijing Shunxin 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 Beijing Shunxin Agriculture 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 Beijing Shunxin i.e., Beijing Shunxin and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Impulse Qingdao
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to under-perform the Impulse Qingdao. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Shunxin Agriculture is 2.01 times less risky than Impulse Qingdao. The stock trades about -0.3 of its potential returns per unit of risk. The Impulse Qingdao Health is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,291 in Impulse Qingdao Health on October 29, 2024 and sell it today you would earn a total of 5.00 from holding Impulse Qingdao Health or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. Impulse Qingdao Health
Performance |
| Timeline |
| Beijing Shunxin Agri |
| Impulse Qingdao Health |
Beijing Shunxin and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and Impulse Qingdao
The main advantage of trading using opposite Beijing Shunxin and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin 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.| Beijing Shunxin vs. Chengdu Kanghua Biological | Beijing Shunxin vs. Beijing Wantai Biological | Beijing Shunxin vs. Suzhou Novoprotein Scientific | Beijing Shunxin vs. Aluminum Corp of |
| Impulse Qingdao vs. Youngy Health Co | Impulse Qingdao vs. Panda Financial Holding | Impulse Qingdao vs. Andon Health Co | Impulse Qingdao vs. Sanbo Hospital Management |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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