Correlation Between Gansu Jiu and Impulse Qingdao
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By analyzing existing cross correlation between Gansu Jiu Steel and Impulse Qingdao Health, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Impulse Qingdao.
Diversification Opportunities for Gansu Jiu and Impulse Qingdao
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Impulse is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel 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 Gansu Jiu 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 Gansu Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Gansu Jiu and Impulse Qingdao
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.61 times more return on investment than Impulse Qingdao. However, Gansu Jiu Steel is 1.64 times less risky than Impulse Qingdao. It trades about 0.15 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.06 per unit of risk. If you would invest 179.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Gansu Jiu Steel or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Impulse Qingdao Health
Performance |
| Timeline |
| Gansu Jiu Steel |
| Impulse Qingdao Health |
Gansu Jiu and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Impulse Qingdao
The main advantage of trading using opposite Gansu Jiu and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. China Construction Bank | Gansu Jiu vs. Industrial Bank Co | Gansu Jiu vs. Gansu Huangtai Wine marketing | Gansu Jiu vs. Guosheng Financial Holding |
| Impulse Qingdao vs. Lutian Machinery Co | Impulse Qingdao vs. China Longyuan Power | Impulse Qingdao vs. PetroChina Co Ltd | Impulse Qingdao vs. Bank of China |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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