Correlation Between Cultural Investment and Xiangyang Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cultural Investment Holdings and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Cultural Investment and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Xiangyang Automobile.
Diversification Opportunities for Cultural Investment and Xiangyang Automobile
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Xiangyang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Cultural Investment i.e., Cultural Investment and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Cultural Investment and Xiangyang Automobile
Assuming the 90 days trading horizon Cultural Investment is expected to generate 2.17 times less return on investment than Xiangyang Automobile. But when comparing it to its historical volatility, Cultural Investment Holdings is 1.27 times less risky than Xiangyang Automobile. It trades about 0.1 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 389.00 in Xiangyang Automobile Bearing on September 12, 2024 and sell it today you would earn a total of 390.00 from holding Xiangyang Automobile Bearing or generate 100.26% 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. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Cultural Investment |
| Xiangyang Automobile |
Cultural Investment and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Xiangyang Automobile
The main advantage of trading using opposite Cultural Investment and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile'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 |
| Xiangyang Automobile vs. Lutian Machinery Co | Xiangyang Automobile vs. PetroChina Co Ltd | Xiangyang Automobile vs. Bank of China | Xiangyang Automobile 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |