Correlation Between Cultural Investment and Ningbo Construction
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By analyzing existing cross correlation between Cultural Investment Holdings and Ningbo Construction Co, you can compare the effects of market volatilities on Cultural Investment and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Ningbo Construction.
Diversification Opportunities for Cultural Investment and Ningbo Construction
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Ningbo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Cultural Investment i.e., Cultural Investment and Ningbo Construction go up and down completely randomly.
Pair Corralation between Cultural Investment and Ningbo Construction
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.87 times more return on investment than Ningbo Construction. However, Cultural Investment Holdings is 1.15 times less risky than Ningbo Construction. It trades about 0.14 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.11 per unit of risk. If you would invest 200.00 in Cultural Investment Holdings on August 31, 2024 and sell it today you would earn a total of 21.00 from holding Cultural Investment Holdings or generate 10.5% 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. Ningbo Construction Co
Performance |
| Timeline |
| Cultural Investment |
| Ningbo Construction |
Cultural Investment and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Ningbo Construction
The main advantage of trading using opposite Cultural Investment and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction's long position.| Cultural Investment vs. BYD Co Ltd | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China State Construction |
| Ningbo Construction vs. Cultural Investment Holdings | Ningbo Construction vs. Gome Telecom Equipment | Ningbo Construction vs. Bus Online Co | Ningbo Construction vs. Holitech Technology 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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