Correlation Between Andon Health and Cultural Investment
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By analyzing existing cross correlation between Andon Health Co and Cultural Investment Holdings, you can compare the effects of market volatilities on Andon Health 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 Andon Health with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Cultural Investment.
Diversification Opportunities for Andon Health and Cultural Investment
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andon and Cultural is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Andon Health 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 Andon Health Co 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 Andon Health i.e., Andon Health and Cultural Investment go up and down completely randomly.
Pair Corralation between Andon Health and Cultural Investment
Assuming the 90 days trading horizon Andon Health is expected to generate 5.53 times less return on investment than Cultural Investment. But when comparing it to its historical volatility, Andon Health Co is 1.35 times less risky than Cultural Investment. It trades about 0.03 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 168.00 in Cultural Investment Holdings on September 13, 2024 and sell it today you would earn a total of 76.00 from holding Cultural Investment Holdings or generate 45.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Cultural Investment Holdings
Performance |
| Timeline |
| Andon Health |
| Cultural Investment |
Andon Health and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Cultural Investment
The main advantage of trading using opposite Andon Health and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health 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.| Andon Health vs. Guilin Seamild Foods | Andon Health vs. Longmaster Information Tech | Andon Health vs. Xiamen Jihong Package | Andon Health vs. Guangzhou Ruoyuchen Information |
| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
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