Correlation Between Chongqing Sulian and Cultural Investment
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Cultural Investment Holdings, you can compare the effects of market volatilities on Chongqing Sulian 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 Chongqing Sulian with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Cultural Investment.
Diversification Opportunities for Chongqing Sulian and Cultural Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Cultural is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Chongqing Sulian 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 Chongqing Sulian Plastic 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 Chongqing Sulian i.e., Chongqing Sulian and Cultural Investment go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Cultural Investment
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 1.37 times more return on investment than Cultural Investment. However, Chongqing Sulian is 1.37 times more volatile than Cultural Investment Holdings. It trades about 0.12 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.02 per unit of risk. If you would invest 2,581 in Chongqing Sulian Plastic on September 4, 2024 and sell it today you would earn a total of 269.00 from holding Chongqing Sulian Plastic or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Cultural Investment Holdings
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Cultural Investment |
Chongqing Sulian and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Cultural Investment
The main advantage of trading using opposite Chongqing Sulian and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian 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.| Chongqing Sulian vs. Cultural Investment Holdings | Chongqing Sulian vs. Gome Telecom Equipment | Chongqing Sulian vs. Bus Online Co | Chongqing Sulian vs. Holitech Technology Co |
| Cultural Investment vs. China State Construction | Cultural Investment vs. Poly Real Estate | Cultural Investment vs. China Vanke Co | Cultural Investment vs. China Merchants Shekou |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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