Correlation Between Cultural Investment and Changchun
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By analyzing existing cross correlation between Cultural Investment Holdings and Changchun UP Optotech, you can compare the effects of market volatilities on Cultural Investment and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Changchun.
Diversification Opportunities for Cultural Investment and Changchun
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Changchun is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Cultural Investment i.e., Cultural Investment and Changchun go up and down completely randomly.
Pair Corralation between Cultural Investment and Changchun
Assuming the 90 days trading horizon Cultural Investment is expected to generate 1.53 times less return on investment than Changchun. But when comparing it to its historical volatility, Cultural Investment Holdings is 1.29 times less risky than Changchun. It trades about 0.09 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,765 in Changchun UP Optotech on September 2, 2024 and sell it today you would earn a total of 1,390 from holding Changchun UP Optotech or generate 50.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Changchun UP Optotech
Performance |
| Timeline |
| Cultural Investment |
| Changchun UP Optotech |
Cultural Investment and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Changchun
The main advantage of trading using opposite Cultural Investment and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Cultural Investment vs. China Minmetals Rare | Cultural Investment vs. Chengtun Mining Group | Cultural Investment vs. Qinghaihuading Industrial Co | Cultural Investment vs. China Life Insurance |
| Changchun vs. Jiangsu Phoenix Publishing | Changchun vs. Western Metal Materials | Changchun vs. Tibet Huayu Mining | Changchun vs. Time Publishing and |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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