Correlation Between Cultural Investment and Shenzhen Kexin
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By analyzing existing cross correlation between Cultural Investment Holdings and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Cultural Investment and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Shenzhen Kexin.
Diversification Opportunities for Cultural Investment and Shenzhen Kexin
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cultural and Shenzhen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Cultural Investment i.e., Cultural Investment and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Cultural Investment and Shenzhen Kexin
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.96 times more return on investment than Shenzhen Kexin. However, Cultural Investment Holdings is 1.05 times less risky than Shenzhen Kexin. It trades about -0.07 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.15 per unit of risk. If you would invest 259.00 in Cultural Investment Holdings on September 15, 2024 and sell it today you would lose (14.00) from holding Cultural Investment Holdings or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Cultural Investment |
| Shenzhen Kexin Commu |
Cultural Investment and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Shenzhen Kexin
The main advantage of trading using opposite Cultural Investment and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin'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 |
| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Bank of China | Shenzhen Kexin vs. Agricultural Bank of |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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