Correlation Between Cultural Investment and DO Home
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By analyzing existing cross correlation between Cultural Investment Holdings and DO Home Collection, you can compare the effects of market volatilities on Cultural Investment and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and DO Home.
Diversification Opportunities for Cultural Investment and DO Home
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and 002798 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Cultural Investment i.e., Cultural Investment and DO Home go up and down completely randomly.
Pair Corralation between Cultural Investment and DO Home
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the DO Home. But the stock apears to be less risky and, when comparing its historical volatility, Cultural Investment Holdings is 1.38 times less risky than DO Home. The stock trades about -0.08 of its potential returns per unit of risk. The DO Home Collection is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 413.00 in DO Home Collection on October 16, 2024 and sell it today you would lose (46.00) from holding DO Home Collection or give up 11.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. DO Home Collection
Performance |
| Timeline |
| Cultural Investment |
| DO Home Collection |
Cultural Investment and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and DO Home
The main advantage of trading using opposite Cultural Investment and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Cultural Investment vs. Keeson Technology Corp | Cultural Investment vs. Bangyan Technology Co | Cultural Investment vs. Hubei Forbon Technology | Cultural Investment vs. Soyea Technology Co |
| DO Home vs. Cultural Investment Holdings | DO Home vs. Yindu Kitchen Equipment | DO Home vs. Juneyao Airlines | DO Home vs. Hubei Geoway Investment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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