Correlation Between Cultural Investment and Fujian Longzhou
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By analyzing existing cross correlation between Cultural Investment Holdings and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Cultural Investment and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Fujian Longzhou.
Diversification Opportunities for Cultural Investment and Fujian Longzhou
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Fujian is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Cultural Investment i.e., Cultural Investment and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Cultural Investment and Fujian Longzhou
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the Fujian Longzhou. But the stock apears to be less risky and, when comparing its historical volatility, Cultural Investment Holdings is 2.34 times less risky than Fujian Longzhou. The stock trades about -0.21 of its potential returns per unit of risk. The Fujian Longzhou Transportation is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 413.00 in Fujian Longzhou Transportation on November 29, 2024 and sell it today you would earn a total of 35.00 from holding Fujian Longzhou Transportation or generate 8.47% 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. Fujian Longzhou Transportation
Performance |
| Timeline |
| Cultural Investment |
| Fujian Longzhou Tran |
Cultural Investment and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Fujian Longzhou
The main advantage of trading using opposite Cultural Investment and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Cultural Investment vs. Chongqing Brewery Co | Cultural Investment vs. Jiangsu GDK Biotechnology | Cultural Investment vs. Guangdong Marubi Biotechnology | Cultural Investment vs. China Eastern Airlines |
| Fujian Longzhou vs. Tjk Machinery Tianjin | Fujian Longzhou vs. Allied Machinery Co | Fujian Longzhou vs. Long Yuan Construction | Fujian Longzhou vs. Gansu Huangtai Wine marketing |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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