Correlation Between Cultural Investment and Penghua Shenzhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cultural Investment Holdings and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Cultural Investment and Penghua Shenzhen 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 Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Penghua Shenzhen.
Diversification Opportunities for Cultural Investment and Penghua Shenzhen
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cultural and Penghua is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy 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 Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of Cultural Investment i.e., Cultural Investment and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Cultural Investment and Penghua Shenzhen
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 5.49 times more return on investment than Penghua Shenzhen. However, Cultural Investment is 5.49 times more volatile than Penghua Shenzhen Energy. It trades about 0.02 of its potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.08 per unit of risk. If you would invest 229.00 in Cultural Investment Holdings on August 29, 2024 and sell it today you would lose (2.00) from holding Cultural Investment Holdings or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Cultural Investment |
| Penghua Shenzhen Energy |
Cultural Investment and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Penghua Shenzhen
The main advantage of trading using opposite Cultural Investment and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen's long position.| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Bank of China |
| Penghua Shenzhen vs. Zhongtong Guomai Communication | Penghua Shenzhen vs. Bus Online Co | Penghua Shenzhen vs. Guangzhou Dongfang Hotel | Penghua Shenzhen vs. Eastern Communications Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |