Correlation Between Guangxi Wuzhou and Cultural Investment
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Cultural Investment Holdings, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Cultural Investment.
Diversification Opportunities for Guangxi Wuzhou and Cultural Investment
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Cultural is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Cultural Investment go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Cultural Investment
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.55 times more return on investment than Cultural Investment. However, Guangxi Wuzhou Communications is 1.82 times less risky than Cultural Investment. It trades about 0.01 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.01 per unit of risk. If you would invest 414.00 in Guangxi Wuzhou Communications on September 4, 2024 and sell it today you would lose (16.00) from holding Guangxi Wuzhou Communications or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Cultural Investment Holdings
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Cultural Investment |
Guangxi Wuzhou and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Cultural Investment
The main advantage of trading using opposite Guangxi Wuzhou and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. China State Construction | Guangxi Wuzhou vs. Poly Real Estate | Guangxi Wuzhou vs. China Vanke Co | Guangxi Wuzhou vs. China Merchants Shekou |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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