Correlation Between Luolai Home and Impulse Qingdao
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By analyzing existing cross correlation between Luolai Home Textile and Impulse Qingdao Health, you can compare the effects of market volatilities on Luolai Home 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 Luolai Home with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luolai Home and Impulse Qingdao.
Diversification Opportunities for Luolai Home and Impulse Qingdao
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luolai and Impulse is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Luolai Home Textile 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 Luolai Home 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 Luolai Home Textile 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 Luolai Home i.e., Luolai Home and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Luolai Home and Impulse Qingdao
Assuming the 90 days trading horizon Luolai Home Textile is expected to under-perform the Impulse Qingdao. But the stock apears to be less risky and, when comparing its historical volatility, Luolai Home Textile is 1.95 times less risky than Impulse Qingdao. The stock trades about -0.01 of its potential returns per unit of risk. The Impulse Qingdao Health is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,291 in Impulse Qingdao Health on October 27, 2024 and sell it today you would earn a total of 1,005 from holding Impulse Qingdao Health or generate 77.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luolai Home Textile vs. Impulse Qingdao Health
Performance |
| Timeline |
| Luolai Home Textile |
| Impulse Qingdao Health |
Luolai Home and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luolai Home and Impulse Qingdao
The main advantage of trading using opposite Luolai Home and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luolai Home 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.| Luolai Home vs. Xinjiang Communications Construction | Luolai Home vs. Sanbo Hospital Management | Luolai Home vs. Beijing Bewinner Communications | Luolai Home vs. AVIC Fund Management |
| Impulse Qingdao vs. Ming Yang Smart | Impulse Qingdao vs. 159681 | Impulse Qingdao vs. 159005 | Impulse Qingdao vs. Loctek Ergonomic Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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