Correlation Between Cultural Investment and Beijing Yuanlong
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By analyzing existing cross correlation between Cultural Investment Holdings and Beijing Yuanlong Yato, you can compare the effects of market volatilities on Cultural Investment and Beijing Yuanlong 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 Beijing Yuanlong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Beijing Yuanlong.
Diversification Opportunities for Cultural Investment and Beijing Yuanlong
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Beijing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Beijing Yuanlong Yato in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yuanlong Yato 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 Beijing Yuanlong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yuanlong Yato has no effect on the direction of Cultural Investment i.e., Cultural Investment and Beijing Yuanlong go up and down completely randomly.
Pair Corralation between Cultural Investment and Beijing Yuanlong
Assuming the 90 days trading horizon Cultural Investment is expected to generate 20.62 times less return on investment than Beijing Yuanlong. But when comparing it to its historical volatility, Cultural Investment Holdings is 2.03 times less risky than Beijing Yuanlong. It trades about 0.03 of its potential returns per unit of risk. Beijing Yuanlong Yato is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,248 in Beijing Yuanlong Yato on September 13, 2024 and sell it today you would earn a total of 639.00 from holding Beijing Yuanlong Yato or generate 51.2% 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. Beijing Yuanlong Yato
Performance |
| Timeline |
| Cultural Investment |
| Beijing Yuanlong Yato |
Cultural Investment and Beijing Yuanlong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Beijing Yuanlong
The main advantage of trading using opposite Cultural Investment and Beijing Yuanlong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Beijing Yuanlong 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 Beijing Yuanlong will offset losses from the drop in Beijing Yuanlong'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 |
| Beijing Yuanlong vs. Kuangda Technology Group | Beijing Yuanlong vs. Nuode Investment Co | Beijing Yuanlong vs. Uxi Unicomp Technology | Beijing Yuanlong vs. Tieling Newcity 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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