Correlation Between Cultural Investment and Techshine Electronics
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By analyzing existing cross correlation between Cultural Investment Holdings and Techshine Electronics Co, you can compare the effects of market volatilities on Cultural Investment and Techshine Electronics 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 Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Techshine Electronics.
Diversification Opportunities for Cultural Investment and Techshine Electronics
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Techshine is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics 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 Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Cultural Investment i.e., Cultural Investment and Techshine Electronics go up and down completely randomly.
Pair Corralation between Cultural Investment and Techshine Electronics
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the Techshine Electronics. In addition to that, Cultural Investment is 1.42 times more volatile than Techshine Electronics Co. It trades about -0.03 of its total potential returns per unit of risk. Techshine Electronics Co is currently generating about -0.03 per unit of volatility. If you would invest 2,066 in Techshine Electronics Co on September 3, 2024 and sell it today you would lose (40.00) from holding Techshine Electronics Co or give up 1.94% 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. Techshine Electronics Co
Performance |
| Timeline |
| Cultural Investment |
| Techshine Electronics |
Cultural Investment and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Techshine Electronics
The main advantage of trading using opposite Cultural Investment and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.| Cultural Investment vs. Anji Foodstuff Co | Cultural Investment vs. Shenzhen Clou Electronics | Cultural Investment vs. Muyuan Foodstuff Co | Cultural Investment vs. Leyard Optoelectronic |
| Techshine Electronics vs. Agricultural Bank of | Techshine Electronics vs. China Construction Bank | Techshine Electronics vs. Postal Savings Bank | Techshine Electronics 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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