Correlation Between Cultural Investment and Aerospace
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By analyzing existing cross correlation between Cultural Investment Holdings and Aerospace Hi Tech Holding, you can compare the effects of market volatilities on Cultural Investment and Aerospace 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 Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Aerospace.
Diversification Opportunities for Cultural Investment and Aerospace
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Aerospace is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Aerospace Hi Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Hi Tech 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 Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Hi Tech has no effect on the direction of Cultural Investment i.e., Cultural Investment and Aerospace go up and down completely randomly.
Pair Corralation between Cultural Investment and Aerospace
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.2 times more return on investment than Aerospace. However, Cultural Investment is 1.2 times more volatile than Aerospace Hi Tech Holding. It trades about 0.03 of its potential returns per unit of risk. Aerospace Hi Tech Holding is currently generating about -0.12 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 | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Aerospace Hi Tech Holding
Performance |
| Timeline |
| Cultural Investment |
| Aerospace Hi Tech |
Cultural Investment and Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Aerospace
The main advantage of trading using opposite Cultural Investment and Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Aerospace 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 Aerospace will offset losses from the drop in Aerospace'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 |
| Aerospace vs. Lutian Machinery Co | Aerospace vs. PetroChina Co Ltd | Aerospace vs. Bank of China | Aerospace 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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