Correlation Between Shenzhen SDG and Cultural Investment
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By analyzing existing cross correlation between Shenzhen SDG Information and Cultural Investment Holdings, you can compare the effects of market volatilities on Shenzhen SDG and Cultural Investment 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 Shenzhen SDG with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Cultural Investment.
Diversification Opportunities for Shenzhen SDG and Cultural Investment
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Cultural is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Shenzhen SDG 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 Shenzhen SDG Information are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Cultural Investment go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Cultural Investment
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 1.57 times more return on investment than Cultural Investment. However, Shenzhen SDG is 1.57 times more volatile than Cultural Investment Holdings. It trades about 0.0 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.13 per unit of risk. If you would invest 565.00 in Shenzhen SDG Information on November 3, 2024 and sell it today you would lose (3.00) from holding Shenzhen SDG Information or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Cultural Investment Holdings
Performance |
| Timeline |
| Shenzhen SDG Information |
| Cultural Investment |
Shenzhen SDG and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Cultural Investment
The main advantage of trading using opposite Shenzhen SDG and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Shenzhen SDG vs. Guilin Seamild Foods | Shenzhen SDG vs. Qilu Bank Co | Shenzhen SDG vs. Unisplendour Corp | Shenzhen SDG vs. Guosheng Financial Holding |
| Cultural Investment vs. Suzhou Weizhixiang Food | Cultural Investment vs. Guizhou Chanhen Chemical | Cultural Investment vs. Gan Yuan Foods | Cultural Investment vs. Bsm Chemical Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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