Correlation Between Tengda Construction and Cultural Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tengda Construction Group and Cultural Investment Holdings, you can compare the effects of market volatilities on Tengda Construction 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 Tengda Construction with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Cultural Investment.
Diversification Opportunities for Tengda Construction and Cultural Investment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tengda and Cultural is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Tengda Construction 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 Tengda Construction Group 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 Tengda Construction i.e., Tengda Construction and Cultural Investment go up and down completely randomly.
Pair Corralation between Tengda Construction and Cultural Investment
Assuming the 90 days trading horizon Tengda Construction Group is expected to generate 0.45 times more return on investment than Cultural Investment. However, Tengda Construction Group is 2.2 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 253.00 in Tengda Construction Group on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Tengda Construction Group or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tengda Construction Group vs. Cultural Investment Holdings
Performance |
| Timeline |
| Tengda Construction |
| Cultural Investment |
Tengda Construction and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and Cultural Investment
The main advantage of trading using opposite Tengda Construction and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction 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.| Tengda Construction vs. Zhejiang Kingland Pipeline | Tengda Construction vs. Longmaster Information Tech | Tengda Construction vs. Yonyou Auto Information | Tengda Construction vs. Keda Clean Energy |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |