Correlation Between China Longyuan and Impulse Qingdao
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By analyzing existing cross correlation between China Longyuan Power and Impulse Qingdao Health, you can compare the effects of market volatilities on China Longyuan 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 Longyuan with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Longyuan and Impulse Qingdao.
Diversification Opportunities for China Longyuan and Impulse Qingdao
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Impulse is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Longyuan Power 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 Longyuan 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 Longyuan Power 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 Longyuan i.e., China Longyuan and Impulse Qingdao go up and down completely randomly.
Pair Corralation between China Longyuan and Impulse Qingdao
Assuming the 90 days trading horizon China Longyuan Power is expected to under-perform the Impulse Qingdao. But the stock apears to be less risky and, when comparing its historical volatility, China Longyuan Power is 3.1 times less risky than Impulse Qingdao. The stock trades about -0.36 of its potential returns per unit of risk. The Impulse Qingdao Health is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,316 in Impulse Qingdao Health on October 20, 2024 and sell it today you would lose (71.00) from holding Impulse Qingdao Health or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Longyuan Power vs. Impulse Qingdao Health
Performance |
| Timeline |
| China Longyuan Power |
| Impulse Qingdao Health |
China Longyuan and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Longyuan and Impulse Qingdao
The main advantage of trading using opposite China Longyuan and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Longyuan 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 Longyuan vs. Allgens Medical Technology | China Longyuan vs. Ningxia Younglight Chemicals | China Longyuan vs. Shanghai Sanyou Medical | China Longyuan vs. Maoming Petro Chemical Shihua |
| Impulse Qingdao vs. Nexchip Semiconductor Corp | Impulse Qingdao vs. Semiconductor Manufacturing Intl | Impulse Qingdao vs. Chongqing Changan Automobile | Impulse Qingdao vs. Lontium Semiconductor Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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