Correlation Between Impulse Qingdao and PKU HealthCare
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By analyzing existing cross correlation between Impulse Qingdao Health and PKU HealthCare Corp, you can compare the effects of market volatilities on Impulse Qingdao and PKU HealthCare 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 PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and PKU HealthCare.
Diversification Opportunities for Impulse Qingdao and PKU HealthCare
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Impulse and PKU is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and PKU HealthCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKU HealthCare Corp 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 PKU HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKU HealthCare Corp has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and PKU HealthCare go up and down completely randomly.
Pair Corralation between Impulse Qingdao and PKU HealthCare
Assuming the 90 days trading horizon Impulse Qingdao Health is expected to generate 1.98 times more return on investment than PKU HealthCare. However, Impulse Qingdao is 1.98 times more volatile than PKU HealthCare Corp. It trades about 0.22 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.03 per unit of risk. If you would invest 1,719 in Impulse Qingdao Health on September 1, 2024 and sell it today you would earn a total of 360.00 from holding Impulse Qingdao Health or generate 20.94% 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. PKU HealthCare Corp
Performance |
| Timeline |
| Impulse Qingdao Health |
| PKU HealthCare Corp |
Impulse Qingdao and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and PKU HealthCare
The main advantage of trading using opposite Impulse Qingdao and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, PKU HealthCare 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 PKU HealthCare will offset losses from the drop in PKU HealthCare's long position.| Impulse Qingdao vs. Nanjing Putian Telecommunications | Impulse Qingdao vs. Shenzhen Hifuture Electric | Impulse Qingdao vs. Tianjin Realty Development | Impulse Qingdao vs. Shenyang Huitian Thermal |
| PKU HealthCare vs. Zhejiang HISUN Biomaterials | PKU HealthCare vs. Uxi Unicomp Technology | PKU HealthCare vs. Ningbo Tip Rubber | PKU HealthCare vs. ROPEOK Technology Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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