Correlation Between Hubei Geoway and Cultural Investment
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By analyzing existing cross correlation between Hubei Geoway Investment and Cultural Investment Holdings, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Cultural Investment.
Diversification Opportunities for Hubei Geoway and Cultural Investment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Cultural is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and Cultural Investment go up and down completely randomly.
Pair Corralation between Hubei Geoway and Cultural Investment
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.12 times more return on investment than Cultural Investment. However, Hubei Geoway is 1.12 times more volatile than Cultural Investment Holdings. It trades about 0.04 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.03 per unit of risk. If you would invest 140.00 in Hubei Geoway Investment on October 25, 2024 and sell it today you would earn a total of 7.00 from holding Hubei Geoway Investment or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Cultural Investment Holdings
Performance |
| Timeline |
| Hubei Geoway Investment |
| Cultural Investment |
Hubei Geoway and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Cultural Investment
The main advantage of trading using opposite Hubei Geoway and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Cultural Investment Holdings | Hubei Geoway vs. Harbin Hatou Investment | Hubei Geoway vs. Xiandai Investment Co | Hubei Geoway vs. Shenzhen AV Display Co |
| Cultural Investment vs. Yingde Greatchem Chemicals | Cultural Investment vs. MayAir Technology Co | Cultural Investment vs. Beijing Kingsoft Office | Cultural Investment vs. Southchip Semiconductor Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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