Correlation Between Cultural Investment and Hengerda New
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By analyzing existing cross correlation between Cultural Investment Holdings and Hengerda New Materials, you can compare the effects of market volatilities on Cultural Investment and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Hengerda New.
Diversification Opportunities for Cultural Investment and Hengerda New
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Hengerda is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of Cultural Investment i.e., Cultural Investment and Hengerda New go up and down completely randomly.
Pair Corralation between Cultural Investment and Hengerda New
Assuming the 90 days trading horizon Cultural Investment is expected to generate 3.18 times less return on investment than Hengerda New. In addition to that, Cultural Investment is 1.27 times more volatile than Hengerda New Materials. It trades about 0.02 of its total potential returns per unit of risk. Hengerda New Materials is currently generating about 0.09 per unit of volatility. If you would invest 2,813 in Hengerda New Materials on September 4, 2024 and sell it today you would earn a total of 125.00 from holding Hengerda New Materials or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Hengerda New Materials
Performance |
| Timeline |
| Cultural Investment |
| Hengerda New Materials |
Cultural Investment and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Hengerda New
The main advantage of trading using opposite Cultural Investment and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| Cultural Investment vs. China State Construction | Cultural Investment vs. Poly Real Estate | Cultural Investment vs. China Vanke Co | Cultural Investment vs. China Merchants Shekou |
| Hengerda New vs. Bank of China | Hengerda New vs. Kweichow Moutai Co | Hengerda New vs. PetroChina Co Ltd | Hengerda New vs. Bank of Communications |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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