Correlation Between Cultural Investment and Hang Xiao
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By analyzing existing cross correlation between Cultural Investment Holdings and Hang Xiao Steel, you can compare the effects of market volatilities on Cultural Investment and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Hang Xiao.
Diversification Opportunities for Cultural Investment and Hang Xiao
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Hang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Cultural Investment i.e., Cultural Investment and Hang Xiao go up and down completely randomly.
Pair Corralation between Cultural Investment and Hang Xiao
Assuming the 90 days trading horizon Cultural Investment is expected to generate 1.87 times less return on investment than Hang Xiao. In addition to that, Cultural Investment is 1.45 times more volatile than Hang Xiao Steel. It trades about 0.02 of its total potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.06 per unit of volatility. If you would invest 284.00 in Hang Xiao Steel on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Hang Xiao Steel or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Hang Xiao Steel
Performance |
| Timeline |
| Cultural Investment |
| Hang Xiao Steel |
Cultural Investment and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Hang Xiao
The main advantage of trading using opposite Cultural Investment and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao'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 |
| Hang Xiao vs. Sichuan Fulin Transportation | Hang Xiao vs. Miracll Chemicals Co | Hang Xiao vs. Huaxia Fund Management | Hang Xiao vs. Shaanxi Meineng Clean |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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