Correlation Between Beijing Shunxin and Cultural Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Shunxin Agriculture and Cultural Investment Holdings, you can compare the effects of market volatilities on Beijing Shunxin 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 Beijing Shunxin with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Cultural Investment.
Diversification Opportunities for Beijing Shunxin and Cultural Investment
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Cultural is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Beijing Shunxin 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 Beijing Shunxin Agriculture 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 Beijing Shunxin i.e., Beijing Shunxin and Cultural Investment go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Cultural Investment
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Shunxin Agriculture is 1.42 times less risky than Cultural Investment. The stock trades about -0.02 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 235.00 in Cultural Investment Holdings on October 27, 2024 and sell it today you would lose (30.00) from holding Cultural Investment Holdings or give up 12.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. Cultural Investment Holdings
Performance |
| Timeline |
| Beijing Shunxin Agri |
| Cultural Investment |
Beijing Shunxin and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and Cultural Investment
The main advantage of trading using opposite Beijing Shunxin and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin 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.| Beijing Shunxin vs. Ingenic Semiconductor | Beijing Shunxin vs. Lontium Semiconductor Corp | Beijing Shunxin vs. Shanghai V Test Semiconductor | Beijing Shunxin vs. Fiberhome Telecommunication Technologies |
| Cultural Investment vs. Kuang Chi Technologies | Cultural Investment vs. Jilin Jlu Communication | Cultural Investment vs. Jinhui Liquor Co | Cultural Investment vs. Vats Liquor Chain |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |