Correlation Between Cultural Investment and Der International
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By analyzing existing cross correlation between Cultural Investment Holdings and Der International Home, you can compare the effects of market volatilities on Cultural Investment and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Der International.
Diversification Opportunities for Cultural Investment and Der International
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Der is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Cultural Investment i.e., Cultural Investment and Der International go up and down completely randomly.
Pair Corralation between Cultural Investment and Der International
Assuming the 90 days trading horizon Cultural Investment is expected to generate 1.66 times less return on investment than Der International. In addition to that, Cultural Investment is 1.2 times more volatile than Der International Home. It trades about 0.14 of its total potential returns per unit of risk. Der International Home is currently generating about 0.29 per unit of volatility. If you would invest 444.00 in Der International Home on August 31, 2024 and sell it today you would earn a total of 87.00 from holding Der International Home or generate 19.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Der International Home
Performance |
| Timeline |
| Cultural Investment |
| Der International Home |
Cultural Investment and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Der International
The main advantage of trading using opposite Cultural Investment and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Cultural Investment vs. BYD Co Ltd | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China State Construction |
| Der International vs. Cultural Investment Holdings | Der International vs. Gome Telecom Equipment | Der International vs. Bus Online Co | Der International vs. Holitech Technology Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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