Correlation Between Qingdao Haier and Impulse Qingdao
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By analyzing existing cross correlation between Qingdao Haier Biomedical and Impulse Qingdao Health, you can compare the effects of market volatilities on Qingdao Haier 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 Qingdao Haier with a short position of Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Impulse Qingdao.
Diversification Opportunities for Qingdao Haier and Impulse Qingdao
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Qingdao and Impulse is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical 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 Qingdao Haier 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 Qingdao Haier Biomedical 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 Qingdao Haier i.e., Qingdao Haier and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Qingdao Haier and Impulse Qingdao
Assuming the 90 days trading horizon Qingdao Haier is expected to generate 7.16 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Qingdao Haier Biomedical is 2.64 times less risky than Impulse Qingdao. It trades about 0.07 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,119 in Impulse Qingdao Health on November 8, 2024 and sell it today you would earn a total of 249.00 from holding Impulse Qingdao Health or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Haier Biomedical vs. Impulse Qingdao Health
Performance |
| Timeline |
| Qingdao Haier Biomedical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Impulse Qingdao Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Qingdao Haier and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Impulse Qingdao
The main advantage of trading using opposite Qingdao Haier and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier 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.The idea behind Qingdao Haier Biomedical and Impulse Qingdao Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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