Correlation Between Penghua Shenzhen and Impulse Qingdao
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Impulse Qingdao Health, you can compare the effects of market volatilities on Penghua Shenzhen 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 Penghua Shenzhen with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Impulse Qingdao.
Diversification Opportunities for Penghua Shenzhen and Impulse Qingdao
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penghua and Impulse is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy 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 Penghua Shenzhen 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 Penghua Shenzhen Energy 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 Penghua Shenzhen i.e., Penghua Shenzhen and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Impulse Qingdao
Assuming the 90 days trading horizon Penghua Shenzhen is expected to generate 10.23 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Penghua Shenzhen Energy is 8.54 times less risky than Impulse Qingdao. It trades about 0.19 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 1,685 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Impulse Qingdao Health
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Impulse Qingdao Health |
Penghua Shenzhen and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Impulse Qingdao
The main advantage of trading using opposite Penghua Shenzhen and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen 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.| Penghua Shenzhen vs. Industrial and Commercial | Penghua Shenzhen vs. Kweichow Moutai Co | Penghua Shenzhen vs. Agricultural Bank of | Penghua Shenzhen vs. China Mobile Limited |
| Impulse Qingdao vs. Jiangsu Jinling Sports | Impulse Qingdao vs. Malion New Materials | Impulse Qingdao vs. Citic Guoan Wine | Impulse Qingdao vs. Sinosteel Luonai Materials |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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