Correlation Between Cultural Investment and Guangzhou Seagull
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By analyzing existing cross correlation between Cultural Investment Holdings and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Cultural Investment and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Guangzhou Seagull.
Diversification Opportunities for Cultural Investment and Guangzhou Seagull
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Guangzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Cultural Investment i.e., Cultural Investment and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Cultural Investment and Guangzhou Seagull
Assuming the 90 days trading horizon Cultural Investment is expected to generate 1.07 times less return on investment than Guangzhou Seagull. In addition to that, Cultural Investment is 1.54 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.14 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.24 per unit of volatility. If you would invest 295.00 in Guangzhou Seagull Kitchen on August 31, 2024 and sell it today you would earn a total of 36.00 from holding Guangzhou Seagull Kitchen or generate 12.2% 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. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Cultural Investment |
| Guangzhou Seagull Kitchen |
Cultural Investment and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Guangzhou Seagull
The main advantage of trading using opposite Cultural Investment and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Cultural Investment vs. BYD Co Ltd | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China State Construction |
| Guangzhou Seagull vs. Cultural Investment Holdings | Guangzhou Seagull vs. Gome Telecom Equipment | Guangzhou Seagull vs. Bus Online Co | Guangzhou Seagull vs. Holitech Technology Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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