Correlation Between Lutian Machinery and Impulse Qingdao
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By analyzing existing cross correlation between Lutian Machinery Co and Impulse Qingdao Health, you can compare the effects of market volatilities on Lutian Machinery 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 Lutian Machinery with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Impulse Qingdao.
Diversification Opportunities for Lutian Machinery and Impulse Qingdao
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lutian and Impulse is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery 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 Lutian Machinery 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 Lutian Machinery 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 Lutian Machinery i.e., Lutian Machinery and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Lutian Machinery and Impulse Qingdao
Assuming the 90 days trading horizon Lutian Machinery is expected to generate 1.42 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Lutian Machinery Co is 2.24 times less risky than Impulse Qingdao. It trades about 0.09 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,119 in Impulse Qingdao Health on September 13, 2024 and sell it today you would earn a total of 73.00 from holding Impulse Qingdao Health or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Impulse Qingdao Health
Performance |
| Timeline |
| Lutian Machinery |
| Impulse Qingdao Health |
Lutian Machinery and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Impulse Qingdao
The main advantage of trading using opposite Lutian Machinery and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery 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.| Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Kweichow Moutai Co | Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. China Mobile Limited |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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