Correlation Between Cultural Investment and Xiandai Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cultural Investment Holdings and Xiandai Investment Co, you can compare the effects of market volatilities on Cultural Investment and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Xiandai Investment.
Diversification Opportunities for Cultural Investment and Xiandai Investment
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Xiandai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Cultural Investment i.e., Cultural Investment and Xiandai Investment go up and down completely randomly.
Pair Corralation between Cultural Investment and Xiandai Investment
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the Xiandai Investment. In addition to that, Cultural Investment is 2.69 times more volatile than Xiandai Investment Co. It trades about -0.01 of its total potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.05 per unit of volatility. If you would invest 383.00 in Xiandai Investment Co on September 4, 2024 and sell it today you would earn a total of 80.00 from holding Xiandai Investment Co or generate 20.89% 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. Xiandai Investment Co
Performance |
| Timeline |
| Cultural Investment |
| Xiandai Investment |
Cultural Investment and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Xiandai Investment
The main advantage of trading using opposite Cultural Investment and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Cultural Investment vs. China State Construction | Cultural Investment vs. Poly Real Estate | Cultural Investment vs. China Vanke Co | Cultural Investment vs. China Merchants Shekou |
| Xiandai Investment vs. Jinsanjiang Silicon Material | Xiandai Investment vs. Shandong Hongchuang Aluminum | Xiandai Investment vs. Aluminum Corp of | Xiandai Investment vs. Cangzhou Mingzhu Plastic |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |