Correlation Between Jilin Jlu and Impulse Qingdao
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By analyzing existing cross correlation between Jilin Jlu Communication and Impulse Qingdao Health, you can compare the effects of market volatilities on Jilin Jlu 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 Jilin Jlu with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Impulse Qingdao.
Diversification Opportunities for Jilin Jlu and Impulse Qingdao
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Impulse is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication 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 Jilin Jlu 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 Jilin Jlu Communication 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 Jilin Jlu i.e., Jilin Jlu and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Jilin Jlu and Impulse Qingdao
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 2.58 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Jilin Jlu Communication is 1.24 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 0.22 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Impulse Qingdao Health
Performance |
| Timeline |
| Jilin Jlu Communication |
| Impulse Qingdao Health |
Jilin Jlu and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Impulse Qingdao
The main advantage of trading using opposite Jilin Jlu and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu 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.| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron Steel |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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