Correlation Between Cultural Investment and DR
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By analyzing existing cross correlation between Cultural Investment Holdings and DR Limited, you can compare the effects of market volatilities on Cultural Investment and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and DR.
Diversification Opportunities for Cultural Investment and DR
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and DR is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of Cultural Investment i.e., Cultural Investment and DR go up and down completely randomly.
Pair Corralation between Cultural Investment and DR
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the DR. In addition to that, Cultural Investment is 1.42 times more volatile than DR Limited. It trades about -0.01 of its total potential returns per unit of risk. DR Limited is currently generating about 0.0 per unit of volatility. If you would invest 2,917 in DR Limited on September 4, 2024 and sell it today you would lose (428.00) from holding DR Limited or give up 14.67% 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. DR Limited
Performance |
| Timeline |
| Cultural Investment |
| DR Limited |
Cultural Investment and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and DR
The main advantage of trading using opposite Cultural Investment and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, DR 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 DR will offset losses from the drop in DR'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 |
| DR vs. Ligao Foods CoLtd | DR vs. Cultural Investment Holdings | DR vs. Harbin Hatou Investment | DR vs. Xiandai Investment 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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