Correlation Between Western Metal and Cultural Investment
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By analyzing existing cross correlation between Western Metal Materials and Cultural Investment Holdings, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Cultural Investment.
Diversification Opportunities for Western Metal and Cultural Investment
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Cultural is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Cultural Investment go up and down completely randomly.
Pair Corralation between Western Metal and Cultural Investment
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 2.19 times more return on investment than Cultural Investment. However, Western Metal is 2.19 times more volatile than Cultural Investment Holdings. It trades about 0.03 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 1,687 in Western Metal Materials on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Western Metal Materials or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Cultural Investment Holdings
Performance |
| Timeline |
| Western Metal Materials |
| Cultural Investment |
Western Metal and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Cultural Investment
The main advantage of trading using opposite Western Metal and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. JCHX Mining Management | Western Metal vs. Guosheng Financial Holding | Western Metal vs. Hefei Metalforming Mach | Western Metal vs. Anhui Tongguan Copper |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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