Correlation Between Cultural Investment and Shanghai Metersbonwe
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By analyzing existing cross correlation between Cultural Investment Holdings and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Cultural Investment and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Shanghai Metersbonwe.
Diversification Opportunities for Cultural Investment and Shanghai Metersbonwe
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cultural and Shanghai is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Cultural Investment i.e., Cultural Investment and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Cultural Investment and Shanghai Metersbonwe
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the Shanghai Metersbonwe. But the stock apears to be less risky and, when comparing its historical volatility, Cultural Investment Holdings is 2.99 times less risky than Shanghai Metersbonwe. The stock trades about -0.16 of its potential returns per unit of risk. The Shanghai Metersbonwe FashionAccessories is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 203.00 in Shanghai Metersbonwe FashionAccessories on November 30, 2024 and sell it today you would earn a total of 8.00 from holding Shanghai Metersbonwe FashionAccessories or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Cultural Investment |
| Shanghai Metersbonwe |
Cultural Investment and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Shanghai Metersbonwe
The main advantage of trading using opposite Cultural Investment and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Cultural Investment vs. Southern PublishingMedia Co | Cultural Investment vs. GuoChuang Software Co | Cultural Investment vs. Servyou Software Group | Cultural Investment vs. Xizi Clean Energy |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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