Correlation Between Cultural Investment and Kuang Chi
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By analyzing existing cross correlation between Cultural Investment Holdings and Kuang Chi Technologies, you can compare the effects of market volatilities on Cultural Investment and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Kuang Chi.
Diversification Opportunities for Cultural Investment and Kuang Chi
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Kuang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Cultural Investment i.e., Cultural Investment and Kuang Chi go up and down completely randomly.
Pair Corralation between Cultural Investment and Kuang Chi
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.92 times more return on investment than Kuang Chi. However, Cultural Investment Holdings is 1.09 times less risky than Kuang Chi. It trades about 0.03 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about -0.18 per unit of risk. If you would invest 242.00 in Cultural Investment Holdings on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.83% 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. Kuang Chi Technologies
Performance |
| Timeline |
| Cultural Investment |
| Kuang Chi Technologies |
Cultural Investment and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Kuang Chi
The main advantage of trading using opposite Cultural Investment and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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