Correlation Between Impulse Qingdao and China Reform
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By analyzing existing cross correlation between Impulse Qingdao Health and China Reform Health, you can compare the effects of market volatilities on Impulse Qingdao and China Reform 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 China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and China Reform.
Diversification Opportunities for Impulse Qingdao and China Reform
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Impulse and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health 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 China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and China Reform go up and down completely randomly.
Pair Corralation between Impulse Qingdao and China Reform
Assuming the 90 days trading horizon Impulse Qingdao Health is expected to generate 0.81 times more return on investment than China Reform. However, Impulse Qingdao Health is 1.23 times less risky than China Reform. It trades about 0.04 of its potential returns per unit of risk. China Reform Health is currently generating about 0.02 per unit of risk. If you would invest 1,323 in Impulse Qingdao Health on August 26, 2024 and sell it today you would earn a total of 587.00 from holding Impulse Qingdao Health or generate 44.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impulse Qingdao Health vs. China Reform Health
Performance |
| Timeline |
| Impulse Qingdao Health |
| China Reform Health |
Impulse Qingdao and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and China Reform
The main advantage of trading using opposite Impulse Qingdao and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Impulse Qingdao vs. Shenzhen MYS Environmental | Impulse Qingdao vs. AVIC Fund Management | Impulse Qingdao vs. Shenzhen Bingchuan Network | Impulse Qingdao vs. Penghua Shenzhen Energy |
| China Reform vs. ZYF Lopsking Aluminum | China Reform vs. Jiangxi JDL Environmental | China Reform vs. Hang Xiao Steel | China Reform vs. Dongjiang Environmental Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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