Correlation Between Cultural Investment and China Asset
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By analyzing existing cross correlation between Cultural Investment Holdings and China Asset Management, you can compare the effects of market volatilities on Cultural Investment and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and China Asset.
Diversification Opportunities for Cultural Investment and China Asset
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cultural and China is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Cultural Investment i.e., Cultural Investment and China Asset go up and down completely randomly.
Pair Corralation between Cultural Investment and China Asset
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 3.99 times more return on investment than China Asset. However, Cultural Investment is 3.99 times more volatile than China Asset Management. It trades about 0.17 of its potential returns per unit of risk. China Asset Management is currently generating about 0.05 per unit of risk. If you would invest 201.00 in Cultural Investment Holdings on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Cultural Investment Holdings or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. China Asset Management
Performance |
| Timeline |
| Cultural Investment |
| China Asset Management |
Cultural Investment and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and China Asset
The main advantage of trading using opposite Cultural Investment and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Cultural Investment vs. Easyhome New Retail | Cultural Investment vs. Fuda Alloy Materials | Cultural Investment vs. Guangzhou Tinci Materials | Cultural Investment vs. Suzhou Xingye Material |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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