Correlation Between Cultural Investment and Shaanxi Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cultural Investment Holdings and Shaanxi Energy Investment, you can compare the effects of market volatilities on Cultural Investment and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Shaanxi Energy.
Diversification Opportunities for Cultural Investment and Shaanxi Energy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cultural and Shaanxi is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Cultural Investment i.e., Cultural Investment and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Cultural Investment and Shaanxi Energy
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 2.35 times more return on investment than Shaanxi Energy. However, Cultural Investment is 2.35 times more volatile than Shaanxi Energy Investment. It trades about 0.17 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.14 per unit of risk. If you would invest 201.00 in Cultural Investment Holdings on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Cultural Investment Holdings or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Cultural Investment |
| Shaanxi Energy Investment |
Cultural Investment and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Shaanxi Energy
The main advantage of trading using opposite Cultural Investment and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Cultural Investment vs. Easyhome New Retail | Cultural Investment vs. Fuda Alloy Materials | Cultural Investment vs. Guangzhou Tinci Materials | Cultural Investment vs. Suzhou Xingye Material |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xiangyang Automobile Bearing | Shaanxi Energy vs. Suzhou Novoprotein Scientific | Shaanxi Energy vs. COL Digital Publishing |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |