Correlation Between Cultural Investment and Shenzhen Glory
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By analyzing existing cross correlation between Cultural Investment Holdings and Shenzhen Glory Medical, you can compare the effects of market volatilities on Cultural Investment and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Shenzhen Glory.
Diversification Opportunities for Cultural Investment and Shenzhen Glory
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Cultural Investment i.e., Cultural Investment and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Cultural Investment and Shenzhen Glory
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.5 times more return on investment than Shenzhen Glory. However, Cultural Investment is 1.5 times more volatile than Shenzhen Glory Medical. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about -0.03 per unit of risk. If you would invest 231.00 in Cultural Investment Holdings on September 2, 2024 and sell it today you would lose (11.00) from holding Cultural Investment Holdings or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Cultural Investment |
| Shenzhen Glory Medical |
Cultural Investment and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Shenzhen Glory
The main advantage of trading using opposite Cultural Investment and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory'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 |
| Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. China Construction Bank | Shenzhen Glory vs. Bank of China |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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