Correlation Between Cultural Investment and Kangyue Technology
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By analyzing existing cross correlation between Cultural Investment Holdings and Kangyue Technology Co, you can compare the effects of market volatilities on Cultural Investment and Kangyue Technology 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 Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Kangyue Technology.
Diversification Opportunities for Cultural Investment and Kangyue Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Kangyue is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology 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 Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Cultural Investment i.e., Cultural Investment and Kangyue Technology go up and down completely randomly.
Pair Corralation between Cultural Investment and Kangyue Technology
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.76 times more return on investment than Kangyue Technology. However, Cultural Investment Holdings is 1.31 times less risky than Kangyue Technology. It trades about 0.0 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about 0.0 per unit of risk. If you would invest 247.00 in Cultural Investment Holdings on September 14, 2024 and sell it today you would lose (2.00) from holding Cultural Investment Holdings or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Kangyue Technology Co
Performance |
| Timeline |
| Cultural Investment |
| Kangyue Technology |
Cultural Investment and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Kangyue Technology
The main advantage of trading using opposite Cultural Investment and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology'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 |
| Kangyue Technology vs. Sino Platinum Metals Co | Kangyue Technology vs. Hangzhou Pinming Software | Kangyue Technology vs. Guangzhou Seagull Kitchen | Kangyue Technology vs. Zhejiang Yayi Metal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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