Correlation Between Cultural Investment and China State
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By analyzing existing cross correlation between Cultural Investment Holdings and China State Construction, you can compare the effects of market volatilities on Cultural Investment and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and China State.
Diversification Opportunities for Cultural Investment and China State
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cultural and China is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Cultural Investment i.e., Cultural Investment and China State go up and down completely randomly.
Pair Corralation between Cultural Investment and China State
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 2.32 times more return on investment than China State. However, Cultural Investment is 2.32 times more volatile than China State Construction. It trades about 0.03 of its potential returns per unit of risk. China State Construction is currently generating about -0.03 per unit of risk. If you would invest 230.00 in Cultural Investment Holdings on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. China State Construction
Performance |
| Timeline |
| Cultural Investment |
| China State Construction |
Cultural Investment and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and China State
The main advantage of trading using opposite Cultural Investment and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
| China State vs. Xilinmen Furniture Co | China State vs. Nanjing OLO Home | China State vs. Iat Automobile Technology | China State vs. Fiberhome Telecommunication Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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