Correlation Between Cultural Investment and Hengli Industrial
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By analyzing existing cross correlation between Cultural Investment Holdings and Hengli Industrial Development, you can compare the effects of market volatilities on Cultural Investment and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Hengli Industrial.
Diversification Opportunities for Cultural Investment and Hengli Industrial
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Hengli is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Cultural Investment i.e., Cultural Investment and Hengli Industrial go up and down completely randomly.
Pair Corralation between Cultural Investment and Hengli Industrial
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.87 times more return on investment than Hengli Industrial. However, Cultural Investment Holdings is 1.15 times less risky than Hengli Industrial. It trades about 0.03 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.02 per unit of risk. If you would invest 230.00 in Cultural Investment Holdings on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Hengli Industrial Development
Performance |
| Timeline |
| Cultural Investment |
| Hengli Industrial |
Cultural Investment and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Hengli Industrial
The main advantage of trading using opposite Cultural Investment and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial'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 |
| Hengli Industrial vs. Lutian Machinery Co | Hengli Industrial vs. PetroChina Co Ltd | Hengli Industrial vs. Bank of China | Hengli Industrial vs. Gansu Jiu Steel |
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.
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