Correlation Between Impulse Qingdao and Rongsheng Petrochemical
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By analyzing existing cross correlation between Impulse Qingdao Health and Rongsheng Petrochemical Co, you can compare the effects of market volatilities on Impulse Qingdao and Rongsheng Petrochemical 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 Rongsheng Petrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and Rongsheng Petrochemical.
Diversification Opportunities for Impulse Qingdao and Rongsheng Petrochemical
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impulse and Rongsheng is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and Rongsheng Petrochemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongsheng Petrochemical 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 Rongsheng Petrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongsheng Petrochemical has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and Rongsheng Petrochemical go up and down completely randomly.
Pair Corralation between Impulse Qingdao and Rongsheng Petrochemical
Assuming the 90 days trading horizon Impulse Qingdao Health is expected to generate 2.61 times more return on investment than Rongsheng Petrochemical. However, Impulse Qingdao is 2.61 times more volatile than Rongsheng Petrochemical Co. It trades about 0.05 of its potential returns per unit of risk. Rongsheng Petrochemical Co is currently generating about -0.12 per unit of risk. If you would invest 2,291 in Impulse Qingdao Health on October 29, 2024 and sell it today you would earn a total of 60.00 from holding Impulse Qingdao Health or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impulse Qingdao Health vs. Rongsheng Petrochemical Co
Performance |
| Timeline |
| Impulse Qingdao Health |
| Rongsheng Petrochemical |
Impulse Qingdao and Rongsheng Petrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and Rongsheng Petrochemical
The main advantage of trading using opposite Impulse Qingdao and Rongsheng Petrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, Rongsheng Petrochemical 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 Rongsheng Petrochemical will offset losses from the drop in Rongsheng Petrochemical's long position.| Impulse Qingdao vs. Tongyu Communication | Impulse Qingdao vs. Beijing Yanjing Brewery | Impulse Qingdao vs. Guangxi Wuzhou Communications | Impulse Qingdao vs. Shenzhen Zqgame |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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