Correlation Between Impulse Qingdao and Shenzhen Shenbao
Specify exactly 2 symbols:
By analyzing existing cross correlation between Impulse Qingdao Health and Shenzhen Shenbao Industrial, you can compare the effects of market volatilities on Impulse Qingdao and Shenzhen Shenbao 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 Impulse Qingdao with a short position of Shenzhen Shenbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and Shenzhen Shenbao.
Diversification Opportunities for Impulse Qingdao and Shenzhen Shenbao
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Impulse and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and Shenzhen Shenbao Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Shenbao Ind and Impulse Qingdao 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 Impulse Qingdao Health are associated (or correlated) with Shenzhen Shenbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Shenbao Ind has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and Shenzhen Shenbao go up and down completely randomly.
Pair Corralation between Impulse Qingdao and Shenzhen Shenbao
Assuming the 90 days trading horizon Impulse Qingdao Health is expected to generate 2.49 times more return on investment than Shenzhen Shenbao. However, Impulse Qingdao is 2.49 times more volatile than Shenzhen Shenbao Industrial. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Shenbao Industrial is currently generating about 0.13 per unit of risk. If you would invest 2,119 in Impulse Qingdao Health on September 13, 2024 and sell it today you would earn a total of 73.00 from holding Impulse Qingdao Health or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Impulse Qingdao Health vs. Shenzhen Shenbao Industrial
Performance |
| Timeline |
| Impulse Qingdao Health |
| Shenzhen Shenbao Ind |
Impulse Qingdao and Shenzhen Shenbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and Shenzhen Shenbao
The main advantage of trading using opposite Impulse Qingdao and Shenzhen Shenbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, Shenzhen Shenbao 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 Shenzhen Shenbao will offset losses from the drop in Shenzhen Shenbao's long position.| Impulse Qingdao vs. Lutian Machinery Co | Impulse Qingdao vs. China Longyuan Power | Impulse Qingdao vs. PetroChina Co Ltd | Impulse Qingdao vs. Bank of China |
| Shenzhen Shenbao vs. Sportsoul Co Ltd | Shenzhen Shenbao vs. Shuhua Sports Co | Shenzhen Shenbao vs. Heilongjiang Publishing Media | Shenzhen Shenbao vs. Mango Excellent Media |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |