Correlation Between Impulse Qingdao and Dongfeng Automobile
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By analyzing existing cross correlation between Impulse Qingdao Health and Dongfeng Automobile Co, you can compare the effects of market volatilities on Impulse Qingdao and Dongfeng Automobile 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 Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and Dongfeng Automobile.
Diversification Opportunities for Impulse Qingdao and Dongfeng Automobile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Impulse and Dongfeng is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Impulse Qingdao and Dongfeng Automobile
Assuming the 90 days trading horizon Impulse Qingdao Health is expected to generate 1.01 times more return on investment than Dongfeng Automobile. However, Impulse Qingdao is 1.01 times more volatile than Dongfeng Automobile Co. It trades about 0.22 of its potential returns per unit of risk. Dongfeng Automobile Co is currently generating about 0.09 per unit of risk. If you would invest 1,685 in Impulse Qingdao Health on August 29, 2024 and sell it today you would earn a total of 381.00 from holding Impulse Qingdao Health or generate 22.61% 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. Dongfeng Automobile Co
Performance |
| Timeline |
| Impulse Qingdao Health |
| Dongfeng Automobile |
Impulse Qingdao and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and Dongfeng Automobile
The main advantage of trading using opposite Impulse Qingdao and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| Impulse Qingdao vs. Agricultural Bank of | Impulse Qingdao vs. Industrial and Commercial | Impulse Qingdao vs. Bank of China | Impulse Qingdao vs. China Construction Bank |
| Dongfeng Automobile vs. Zhengzhou Qianweiyangchu Food | Dongfeng Automobile vs. Impulse Qingdao Health | Dongfeng Automobile vs. Yankershop Food Co | Dongfeng Automobile vs. Healthcare 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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