Correlation Between Hangzhou Gaoxin and Impulse Qingdao
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Impulse Qingdao Health, you can compare the effects of market volatilities on Hangzhou Gaoxin 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 Hangzhou Gaoxin with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Impulse Qingdao.
Diversification Opportunities for Hangzhou Gaoxin and Impulse Qingdao
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hangzhou and Impulse is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin 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 Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Impulse Qingdao
Assuming the 90 days trading horizon Hangzhou Gaoxin is expected to generate 1.99 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Hangzhou Gaoxin Rubber is 1.17 times less risky than Impulse Qingdao. It trades about 0.1 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,280 in Impulse Qingdao Health on October 18, 2024 and sell it today you would earn a total of 990.00 from holding Impulse Qingdao Health or generate 77.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Impulse Qingdao Health
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Impulse Qingdao Health |
Hangzhou Gaoxin and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Impulse Qingdao
The main advantage of trading using opposite Hangzhou Gaoxin and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin 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.| Hangzhou Gaoxin vs. China Aluminum International | Hangzhou Gaoxin vs. Pengxin International Mining | Hangzhou Gaoxin vs. Guangdong Jingyi Metal | Hangzhou Gaoxin vs. Ningbo Jintian Copper |
| Impulse Qingdao vs. Ningxia Building Materials | Impulse Qingdao vs. 360 Security Technology | Impulse Qingdao vs. Hoshine Silicon Ind | Impulse Qingdao vs. Hangzhou Gaoxin Rubber |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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