Correlation Between Cultural Investment and Bank of XiAn
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By analyzing existing cross correlation between Cultural Investment Holdings and Bank of XiAn, you can compare the effects of market volatilities on Cultural Investment and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Bank of XiAn.
Diversification Opportunities for Cultural Investment and Bank of XiAn
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Bank is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Cultural Investment i.e., Cultural Investment and Bank of XiAn go up and down completely randomly.
Pair Corralation between Cultural Investment and Bank of XiAn
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 2.24 times more return on investment than Bank of XiAn. However, Cultural Investment is 2.24 times more volatile than Bank of XiAn. It trades about 0.02 of its potential returns per unit of risk. Bank of XiAn is currently generating about 0.03 per unit of risk. If you would invest 237.00 in Cultural Investment Holdings on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Cultural Investment Holdings or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Bank of XiAn
Performance |
| Timeline |
| Cultural Investment |
| Bank of XiAn |
Cultural Investment and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Bank of XiAn
The main advantage of trading using opposite Cultural Investment and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
| Bank of XiAn vs. Cultural Investment Holdings | Bank of XiAn vs. Gome Telecom Equipment | Bank of XiAn vs. Holitech Technology Co | Bank of XiAn vs. Zotye Automobile Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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