Correlation Between Cultural Investment and Shenzhen Centralcon
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By analyzing existing cross correlation between Cultural Investment Holdings and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Cultural Investment and Shenzhen Centralcon 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 Cultural Investment with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Shenzhen Centralcon.
Diversification Opportunities for Cultural Investment and Shenzhen Centralcon
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Shenzhen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Cultural Investment 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 Cultural Investment Holdings are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Cultural Investment i.e., Cultural Investment and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Cultural Investment and Shenzhen Centralcon
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.83 times more return on investment than Shenzhen Centralcon. However, Cultural Investment Holdings is 1.2 times less risky than Shenzhen Centralcon. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.06 per unit of risk. If you would invest 168.00 in Cultural Investment Holdings on September 3, 2024 and sell it today you would earn a total of 52.00 from holding Cultural Investment Holdings or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Cultural Investment |
| Shenzhen Centralcon |
Cultural Investment and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Shenzhen Centralcon
The main advantage of trading using opposite Cultural Investment and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Cultural Investment vs. Anji Foodstuff Co | Cultural Investment vs. Shenzhen Clou Electronics | Cultural Investment vs. Muyuan Foodstuff Co | Cultural Investment vs. Leyard Optoelectronic |
| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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