Correlation Between Tianjin Hi-Tech and Cultural Investment
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Cultural Investment Holdings, you can compare the effects of market volatilities on Tianjin Hi-Tech 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 Tianjin Hi-Tech with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi-Tech and Cultural Investment.
Diversification Opportunities for Tianjin Hi-Tech and Cultural Investment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Cultural is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Tianjin Hi-Tech 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 Tianjin Hi Tech Development 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 Tianjin Hi-Tech i.e., Tianjin Hi-Tech and Cultural Investment go up and down completely randomly.
Pair Corralation between Tianjin Hi-Tech and Cultural Investment
Assuming the 90 days trading horizon Tianjin Hi-Tech is expected to generate 7.59 times less return on investment than Cultural Investment. But when comparing it to its historical volatility, Tianjin Hi Tech Development is 1.37 times less risky than Cultural Investment. It trades about 0.0 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 225.00 in Cultural Investment Holdings on November 30, 2024 and sell it today you would lose (19.00) from holding Cultural Investment Holdings or give up 8.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Cultural Investment Holdings
Performance |
| Timeline |
| Tianjin Hi Tech |
| Cultural Investment |
Tianjin Hi-Tech and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi-Tech and Cultural Investment
The main advantage of trading using opposite Tianjin Hi-Tech and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi-Tech 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.| Tianjin Hi-Tech vs. Shenzhen Urban Transport | Tianjin Hi-Tech vs. Zijin Mining Group | Tianjin Hi-Tech vs. Guangdong Jingyi Metal | Tianjin Hi-Tech vs. Sportsoul Co Ltd |
| Cultural Investment vs. Southern PublishingMedia Co | Cultural Investment vs. GuoChuang Software Co | Cultural Investment vs. Servyou Software Group | Cultural Investment vs. Xizi Clean Energy |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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