Correlation Between Cultural Investment and Xingyuan Environment
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By analyzing existing cross correlation between Cultural Investment Holdings and Xingyuan Environment Technology, you can compare the effects of market volatilities on Cultural Investment and Xingyuan Environment 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 Xingyuan Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Xingyuan Environment.
Diversification Opportunities for Cultural Investment and Xingyuan Environment
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Xingyuan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Xingyuan Environment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingyuan Environment 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 Xingyuan Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingyuan Environment has no effect on the direction of Cultural Investment i.e., Cultural Investment and Xingyuan Environment go up and down completely randomly.
Pair Corralation between Cultural Investment and Xingyuan Environment
Assuming the 90 days trading horizon Cultural Investment is expected to generate 7.58 times less return on investment than Xingyuan Environment. But when comparing it to its historical volatility, Cultural Investment Holdings is 1.1 times less risky than Xingyuan Environment. It trades about 0.0 of its potential returns per unit of risk. Xingyuan Environment Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Xingyuan Environment Technology on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Xingyuan Environment Technology or generate 3.59% 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. Xingyuan Environment Technolog
Performance |
| Timeline |
| Cultural Investment |
| Xingyuan Environment |
Cultural Investment and Xingyuan Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Xingyuan Environment
The main advantage of trading using opposite Cultural Investment and Xingyuan Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Xingyuan Environment 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 Xingyuan Environment will offset losses from the drop in Xingyuan Environment's long position.| Cultural Investment vs. China Minmetals Rare | Cultural Investment vs. Chengtun Mining Group | Cultural Investment vs. Qinghaihuading Industrial Co | Cultural Investment vs. China Life Insurance |
| Xingyuan Environment vs. New China Life | Xingyuan Environment vs. Ming Yang Smart | Xingyuan Environment vs. 159681 | Xingyuan Environment vs. 159005 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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