Correlation Between Impulse Qingdao and Jilin Jlu
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By analyzing existing cross correlation between Impulse Qingdao Health and Jilin Jlu Communication, you can compare the effects of market volatilities on Impulse Qingdao and Jilin Jlu 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 Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and Jilin Jlu.
Diversification Opportunities for Impulse Qingdao and Jilin Jlu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Impulse and Jilin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication 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 Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and Jilin Jlu go up and down completely randomly.
Pair Corralation between Impulse Qingdao and Jilin Jlu
Assuming the 90 days trading horizon Impulse Qingdao Health is expected to generate 1.24 times more return on investment than Jilin Jlu. However, Impulse Qingdao is 1.24 times more volatile than Jilin Jlu Communication. It trades about 0.22 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.1 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impulse Qingdao Health vs. Jilin Jlu Communication
Performance |
| Timeline |
| Impulse Qingdao Health |
| Jilin Jlu Communication |
Impulse Qingdao and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and Jilin Jlu
The main advantage of trading using opposite Impulse Qingdao and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu'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 |
| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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