Correlation Between Cultural Investment and Huaneng Lancang
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By analyzing existing cross correlation between Cultural Investment Holdings and Huaneng Lancang River, you can compare the effects of market volatilities on Cultural Investment and Huaneng Lancang 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 Huaneng Lancang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Huaneng Lancang.
Diversification Opportunities for Cultural Investment and Huaneng Lancang
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cultural and Huaneng is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Huaneng Lancang River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaneng Lancang River 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 Huaneng Lancang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaneng Lancang River has no effect on the direction of Cultural Investment i.e., Cultural Investment and Huaneng Lancang go up and down completely randomly.
Pair Corralation between Cultural Investment and Huaneng Lancang
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 2.6 times more return on investment than Huaneng Lancang. However, Cultural Investment is 2.6 times more volatile than Huaneng Lancang River. It trades about 0.02 of its potential returns per unit of risk. Huaneng Lancang River is currently generating about 0.02 per unit of risk. If you would invest 234.00 in Cultural Investment Holdings on September 18, 2024 and sell it today you would earn a total of 0.00 from holding Cultural Investment Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Huaneng Lancang River
Performance |
| Timeline |
| Cultural Investment |
| Huaneng Lancang River |
Cultural Investment and Huaneng Lancang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Huaneng Lancang
The main advantage of trading using opposite Cultural Investment and Huaneng Lancang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Huaneng Lancang 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 Huaneng Lancang will offset losses from the drop in Huaneng Lancang's long position.| Cultural Investment vs. TianJin 712 Communication | Cultural Investment vs. Lander Sports Development | Cultural Investment vs. Ningxia Younglight Chemicals | Cultural Investment vs. JiShi Media Co |
| Huaneng Lancang vs. Winner Medical Co | Huaneng Lancang vs. Citic Guoan Wine | Huaneng Lancang vs. Chongqing Brewery Co | Huaneng Lancang vs. Innovative Medical Management |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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