Correlation Between Cultural Investment and Beijing Quanshi
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By analyzing existing cross correlation between Cultural Investment Holdings and Beijing Quanshi World, you can compare the effects of market volatilities on Cultural Investment and Beijing Quanshi 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 Quanshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Beijing Quanshi.
Diversification Opportunities for Cultural Investment and Beijing Quanshi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Beijing is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Beijing Quanshi World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Quanshi World 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 Quanshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Quanshi World has no effect on the direction of Cultural Investment i.e., Cultural Investment and Beijing Quanshi go up and down completely randomly.
Pair Corralation between Cultural Investment and Beijing Quanshi
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the Beijing Quanshi. But the stock apears to be less risky and, when comparing its historical volatility, Cultural Investment Holdings is 2.08 times less risky than Beijing Quanshi. The stock trades about -0.07 of its potential returns per unit of risk. The Beijing Quanshi World is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,271 in Beijing Quanshi World on September 15, 2024 and sell it today you would earn a total of 225.00 from holding Beijing Quanshi World or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Beijing Quanshi World
Performance |
| Timeline |
| Cultural Investment |
| Beijing Quanshi World |
Cultural Investment and Beijing Quanshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Beijing Quanshi
The main advantage of trading using opposite Cultural Investment and Beijing Quanshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Beijing Quanshi 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 Quanshi will offset losses from the drop in Beijing Quanshi'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 Quanshi vs. Xiandai Investment Co | Beijing Quanshi vs. Tongyu Communication | Beijing Quanshi vs. Luyin Investment Group | Beijing Quanshi vs. Zhejiang Construction 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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