Correlation Between Xinjiang Communications and Impulse Qingdao
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By analyzing existing cross correlation between Xinjiang Communications Construction and Impulse Qingdao Health, you can compare the effects of market volatilities on Xinjiang Communications and Impulse Qingdao 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 Xinjiang Communications with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Impulse Qingdao.
Diversification Opportunities for Xinjiang Communications and Impulse Qingdao
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Impulse is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health and Xinjiang Communications 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 Xinjiang Communications Construction are associated (or correlated) with Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Impulse Qingdao
Assuming the 90 days trading horizon Xinjiang Communications is expected to generate 1.67 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Xinjiang Communications Construction is 1.53 times less risky than Impulse Qingdao. It trades about 0.2 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.22 of returns per unit of risk over similar time horizon. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Impulse Qingdao Health
Performance |
| Timeline |
| Xinjiang Communications |
| Impulse Qingdao Health |
Xinjiang Communications and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Impulse Qingdao
The main advantage of trading using opposite Xinjiang Communications and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic Technology |
| Impulse Qingdao vs. Nanjing Putian Telecommunications | Impulse Qingdao vs. Shenzhen Hifuture Electric | Impulse Qingdao vs. Tianjin Realty Development | Impulse Qingdao vs. Shenyang Huitian Thermal |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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