Correlation Between Cultural Investment and Chengdu Xingrong
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By analyzing existing cross correlation between Cultural Investment Holdings and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Cultural Investment and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Chengdu Xingrong.
Diversification Opportunities for Cultural Investment and Chengdu Xingrong
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cultural and Chengdu is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Cultural Investment i.e., Cultural Investment and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Cultural Investment and Chengdu Xingrong
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.24 times more return on investment than Chengdu Xingrong. However, Cultural Investment is 1.24 times more volatile than Chengdu Xingrong Investment. It trades about 0.1 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about 0.0 per unit of risk. If you would invest 171.00 in Cultural Investment Holdings on September 12, 2024 and sell it today you would earn a total of 61.00 from holding Cultural Investment Holdings or generate 35.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Cultural Investment |
| Chengdu Xingrong Inv |
Cultural Investment and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Chengdu Xingrong
The main advantage of trading using opposite Cultural Investment and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
| Chengdu Xingrong vs. Sportsoul Co Ltd | Chengdu Xingrong vs. Guizhou BroadcastingTV Info | Chengdu Xingrong vs. Lander Sports Development | Chengdu Xingrong vs. Road Environment 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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