Correlation Between Impulse Qingdao and Guangzhou Automobile
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By analyzing existing cross correlation between Impulse Qingdao Health and Guangzhou Automobile Group, you can compare the effects of market volatilities on Impulse Qingdao and Guangzhou 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and Guangzhou Automobile.
Diversification Opportunities for Impulse Qingdao and Guangzhou Automobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Impulse and Guangzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Impulse Qingdao and Guangzhou Automobile
Assuming the 90 days trading horizon Impulse Qingdao Health is expected to generate 2.56 times more return on investment than Guangzhou Automobile. However, Impulse Qingdao is 2.56 times more volatile than Guangzhou Automobile Group. It trades about 0.13 of its potential returns per unit of risk. Guangzhou Automobile Group is currently generating about 0.17 per unit of risk. If you would invest 2,351 in Impulse Qingdao Health on November 27, 2024 and sell it today you would earn a total of 163.00 from holding Impulse Qingdao Health or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impulse Qingdao Health vs. Guangzhou Automobile Group
Performance |
| Timeline |
| Impulse Qingdao Health |
| Guangzhou Automobile |
Impulse Qingdao and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and Guangzhou Automobile
The main advantage of trading using opposite Impulse Qingdao and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, Guangzhou 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile's long position.| Impulse Qingdao vs. Zhejiang Publishing Media | Impulse Qingdao vs. China Eastern Airlines | Impulse Qingdao vs. Beijing Kaiwen Education | Impulse Qingdao vs. Shandong Publishing Media |
| Guangzhou Automobile vs. Shanghai Yanpu Metal | Guangzhou Automobile vs. Sportsoul Co Ltd | Guangzhou Automobile vs. Chongqing Shunbo Aluminum | Guangzhou Automobile vs. Lander Sports Development |
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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