Correlation Between Shantui Construction and Cultural Investment
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By analyzing existing cross correlation between Shantui Construction Machinery and Cultural Investment Holdings, you can compare the effects of market volatilities on Shantui Construction 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 Shantui Construction with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and Cultural Investment.
Diversification Opportunities for Shantui Construction and Cultural Investment
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shantui and Cultural is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Shantui Construction 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 Shantui Construction Machinery 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 Shantui Construction i.e., Shantui Construction and Cultural Investment go up and down completely randomly.
Pair Corralation between Shantui Construction and Cultural Investment
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to under-perform the Cultural Investment. In addition to that, Shantui Construction is 1.32 times more volatile than Cultural Investment Holdings. It trades about -0.03 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.16 per unit of volatility. If you would invest 220.00 in Cultural Investment Holdings on January 25, 2025 and sell it today you would earn a total of 19.00 from holding Cultural Investment Holdings or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. Cultural Investment Holdings
Performance |
| Timeline |
| Shantui Construction |
| Cultural Investment |
Shantui Construction and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and Cultural Investment
The main advantage of trading using opposite Shantui Construction and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction 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.| Shantui Construction vs. Bank of China | Shantui Construction vs. Agricultural Bank of | Shantui Construction vs. Industrial and Commercial | Shantui Construction vs. Bank of Communications |
| Cultural Investment vs. Yoantion Industrial IncLtd | Cultural Investment vs. Changchun Engley Automobile | Cultural Investment vs. Zijin Mining Group | Cultural Investment vs. Zotye Automobile 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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