Correlation Between Cultural Investment and Hainan Drinda
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By analyzing existing cross correlation between Cultural Investment Holdings and Hainan Drinda Automotive, you can compare the effects of market volatilities on Cultural Investment and Hainan Drinda 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 Hainan Drinda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Hainan Drinda.
Diversification Opportunities for Cultural Investment and Hainan Drinda
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Hainan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Hainan Drinda Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Drinda Automotive 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 Hainan Drinda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Drinda Automotive has no effect on the direction of Cultural Investment i.e., Cultural Investment and Hainan Drinda go up and down completely randomly.
Pair Corralation between Cultural Investment and Hainan Drinda
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.72 times more return on investment than Hainan Drinda. However, Cultural Investment Holdings is 1.39 times less risky than Hainan Drinda. It trades about 0.03 of its potential returns per unit of risk. Hainan Drinda Automotive is currently generating about -0.2 per unit of risk. If you would invest 230.00 in Cultural Investment Holdings on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Hainan Drinda Automotive
Performance |
| Timeline |
| Cultural Investment |
| Hainan Drinda Automotive |
Cultural Investment and Hainan Drinda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Hainan Drinda
The main advantage of trading using opposite Cultural Investment and Hainan Drinda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Hainan Drinda 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 Hainan Drinda will offset losses from the drop in Hainan Drinda's long position.| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
| Hainan Drinda vs. Gansu Jiu Steel | Hainan Drinda vs. Shandong Mining Machinery | Hainan Drinda vs. Aba Chemicals Corp | Hainan Drinda vs. BlueFocus Communication Group |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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