Correlation Between Cultural Investment and Jiangsu Yueda
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By analyzing existing cross correlation between Cultural Investment Holdings and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Cultural Investment and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Jiangsu Yueda.
Diversification Opportunities for Cultural Investment and Jiangsu Yueda
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Cultural Investment i.e., Cultural Investment and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Cultural Investment and Jiangsu Yueda
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.48 times more return on investment than Jiangsu Yueda. However, Cultural Investment is 1.48 times more volatile than Jiangsu Yueda Investment. It trades about 0.17 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.04 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Cultural Investment |
| Jiangsu Yueda Investment |
Cultural Investment and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Jiangsu Yueda
The main advantage of trading using opposite Cultural Investment and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda'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 |
| Jiangsu Yueda vs. Ming Yang Smart | Jiangsu Yueda vs. 159681 | Jiangsu Yueda vs. 159005 | Jiangsu Yueda vs. Loctek Ergonomic Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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