Correlation Between Impulse Qingdao and Zhejiang Construction
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By analyzing existing cross correlation between Impulse Qingdao Health and Zhejiang Construction Investment, you can compare the effects of market volatilities on Impulse Qingdao and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and Zhejiang Construction.
Diversification Opportunities for Impulse Qingdao and Zhejiang Construction
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Impulse and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Impulse Qingdao and Zhejiang Construction
Assuming the 90 days trading horizon Impulse Qingdao Health is expected to under-perform the Zhejiang Construction. But the stock apears to be less risky and, when comparing its historical volatility, Impulse Qingdao Health is 1.51 times less risky than Zhejiang Construction. The stock trades about -0.04 of its potential returns per unit of risk. The Zhejiang Construction Investment is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 948.00 in Zhejiang Construction Investment on September 12, 2024 and sell it today you would earn a total of 115.00 from holding Zhejiang Construction Investment or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Impulse Qingdao Health vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Impulse Qingdao Health |
| Zhejiang Construction |
Impulse Qingdao and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and Zhejiang Construction
The main advantage of trading using opposite Impulse Qingdao and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Impulse Qingdao vs. Lutian Machinery Co | Impulse Qingdao vs. PetroChina Co Ltd | Impulse Qingdao vs. Bank of China | Impulse Qingdao vs. Gansu Jiu Steel |
| Zhejiang Construction vs. Lutian Machinery Co | Zhejiang Construction vs. PetroChina Co Ltd | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. Gansu Jiu Steel |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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