Correlation Between Cultural Investment and Beijing Shunxin
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By analyzing existing cross correlation between Cultural Investment Holdings and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Cultural Investment and Beijing Shunxin 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 Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Beijing Shunxin.
Diversification Opportunities for Cultural Investment and Beijing Shunxin
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Beijing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Cultural Investment i.e., Cultural Investment and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Cultural Investment and Beijing Shunxin
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.83 times more return on investment than Beijing Shunxin. However, Cultural Investment Holdings is 1.21 times less risky than Beijing Shunxin. It trades about -0.33 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.3 per unit of risk. If you would invest 230.00 in Cultural Investment Holdings on October 29, 2024 and sell it today you would lose (25.00) from holding Cultural Investment Holdings or give up 10.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| Cultural Investment |
| Beijing Shunxin Agri |
Cultural Investment and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Beijing Shunxin
The main advantage of trading using opposite Cultural Investment and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| Cultural Investment vs. Bomesc Offshore Engineering | Cultural Investment vs. Wuhan Yangtze Communication | Cultural Investment vs. Wasu Media Holding | Cultural Investment vs. Shanghai Jinfeng Wine |
| Beijing Shunxin vs. Chengdu Kanghua Biological | Beijing Shunxin vs. Beijing Wantai Biological | Beijing Shunxin vs. Suzhou Novoprotein Scientific | Beijing Shunxin vs. Aluminum Corp 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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