Correlation Between Dongfeng Automobile and Impulse Qingdao
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and Impulse Qingdao Health, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Impulse Qingdao.
Diversification Opportunities for Dongfeng Automobile and Impulse Qingdao
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and Impulse is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co 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 Dongfeng Automobile 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 Dongfeng Automobile Co 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 Dongfeng Automobile i.e., Dongfeng Automobile and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Impulse Qingdao
Assuming the 90 days trading horizon Dongfeng Automobile is expected to generate 1.72 times less return on investment than Impulse Qingdao. In addition to that, Dongfeng Automobile is 1.08 times more volatile than Impulse Qingdao Health. It trades about 0.02 of its total potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.04 per unit of volatility. If you would invest 1,323 in Impulse Qingdao Health on August 26, 2024 and sell it today you would earn a total of 587.00 from holding Impulse Qingdao Health or generate 44.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Impulse Qingdao Health
Performance |
| Timeline |
| Dongfeng Automobile |
| Impulse Qingdao Health |
Dongfeng Automobile and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Impulse Qingdao
The main advantage of trading using opposite Dongfeng Automobile and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. Lutian Machinery Co | Dongfeng Automobile vs. China Longyuan Power | Dongfeng Automobile vs. Changshu Tongrun Auto | Dongfeng Automobile vs. PetroChina Co Ltd |
| Impulse Qingdao vs. Shenzhen MYS Environmental | Impulse Qingdao vs. AVIC Fund Management | Impulse Qingdao vs. Shenzhen Bingchuan Network | Impulse Qingdao vs. Penghua Shenzhen Energy |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |