Correlation Between China Reform and Cultural Investment
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By analyzing existing cross correlation between China Reform Health and Cultural Investment Holdings, you can compare the effects of market volatilities on China Reform 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 China Reform with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reform and Cultural Investment.
Diversification Opportunities for China Reform and Cultural Investment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Cultural is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Reform Health and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and China Reform 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 China Reform Health 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 China Reform i.e., China Reform and Cultural Investment go up and down completely randomly.
Pair Corralation between China Reform and Cultural Investment
Assuming the 90 days trading horizon China Reform is expected to generate 1.04 times less return on investment than Cultural Investment. In addition to that, China Reform is 1.72 times more volatile than Cultural Investment Holdings. It trades about 0.11 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.2 per unit of volatility. If you would invest 191.00 in Cultural Investment Holdings on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Cultural Investment Holdings or generate 27.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Reform Health vs. Cultural Investment Holdings
Performance |
| Timeline |
| China Reform Health |
| Cultural Investment |
China Reform and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reform and Cultural Investment
The main advantage of trading using opposite China Reform and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reform 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.| China Reform vs. Shenzhen MYS Environmental | China Reform vs. AVIC Fund Management | China Reform vs. Shenzhen Bingchuan Network | China Reform vs. Penghua Shenzhen Energy |
| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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