Correlation Between Cultural Investment and Wuhan Xianglong
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By analyzing existing cross correlation between Cultural Investment Holdings and Wuhan Xianglong Power, you can compare the effects of market volatilities on Cultural Investment and Wuhan Xianglong 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 Wuhan Xianglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Wuhan Xianglong.
Diversification Opportunities for Cultural Investment and Wuhan Xianglong
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cultural and Wuhan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Wuhan Xianglong Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Xianglong Power 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 Wuhan Xianglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Xianglong Power has no effect on the direction of Cultural Investment i.e., Cultural Investment and Wuhan Xianglong go up and down completely randomly.
Pair Corralation between Cultural Investment and Wuhan Xianglong
Assuming the 90 days trading horizon Cultural Investment is expected to generate 3.49 times less return on investment than Wuhan Xianglong. But when comparing it to its historical volatility, Cultural Investment Holdings is 1.57 times less risky than Wuhan Xianglong. It trades about 0.11 of its potential returns per unit of risk. Wuhan Xianglong Power is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 641.00 in Wuhan Xianglong Power on September 3, 2024 and sell it today you would earn a total of 587.00 from holding Wuhan Xianglong Power or generate 91.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Wuhan Xianglong Power
Performance |
| Timeline |
| Cultural Investment |
| Wuhan Xianglong Power |
Cultural Investment and Wuhan Xianglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Wuhan Xianglong
The main advantage of trading using opposite Cultural Investment and Wuhan Xianglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Wuhan Xianglong 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 Wuhan Xianglong will offset losses from the drop in Wuhan Xianglong's 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 |
| Wuhan Xianglong vs. Cultural Investment Holdings | Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Nuode Investment Co | Wuhan Xianglong vs. Metro Investment Development |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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