Correlation Between Cultural Investment and Shandong Hongchuang
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By analyzing existing cross correlation between Cultural Investment Holdings and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Cultural Investment and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Shandong Hongchuang.
Diversification Opportunities for Cultural Investment and Shandong Hongchuang
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cultural and Shandong is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Cultural Investment i.e., Cultural Investment and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Cultural Investment and Shandong Hongchuang
Assuming the 90 days trading horizon Cultural Investment is expected to generate 3.46 times less return on investment than Shandong Hongchuang. In addition to that, Cultural Investment is 1.63 times more volatile than Shandong Hongchuang Aluminum. It trades about 0.01 of its total potential returns per unit of risk. Shandong Hongchuang Aluminum is currently generating about 0.08 per unit of volatility. If you would invest 437.00 in Shandong Hongchuang Aluminum on October 13, 2024 and sell it today you would earn a total of 530.00 from holding Shandong Hongchuang Aluminum or generate 121.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Cultural Investment |
| Shandong Hongchuang |
Cultural Investment and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Shandong Hongchuang
The main advantage of trading using opposite Cultural Investment and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang's long position.| Cultural Investment vs. Shuhua Sports Co | Cultural Investment vs. Jiangsu Hoperun Software | Cultural Investment vs. Sportsoul Co Ltd | Cultural Investment vs. Dareway Software Co |
| Shandong Hongchuang vs. Xiandai Investment Co | Shandong Hongchuang vs. Jahen Household Products | Shandong Hongchuang vs. Cultural Investment Holdings | Shandong Hongchuang vs. Beijing Jiaman Dress |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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