Correlation Between Cultural Investment and HMTNew Technical
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By analyzing existing cross correlation between Cultural Investment Holdings and HMTNew Technical, you can compare the effects of market volatilities on Cultural Investment and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and HMTNew Technical.
Diversification Opportunities for Cultural Investment and HMTNew Technical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and HMTNew is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Cultural Investment i.e., Cultural Investment and HMTNew Technical go up and down completely randomly.
Pair Corralation between Cultural Investment and HMTNew Technical
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the HMTNew Technical. In addition to that, Cultural Investment is 1.2 times more volatile than HMTNew Technical. It trades about -0.01 of its total potential returns per unit of risk. HMTNew Technical is currently generating about 0.02 per unit of volatility. If you would invest 2,876 in HMTNew Technical on September 13, 2024 and sell it today you would earn a total of 169.00 from holding HMTNew Technical or generate 5.88% 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. HMTNew Technical
Performance |
| Timeline |
| Cultural Investment |
| HMTNew Technical |
Cultural Investment and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and HMTNew Technical
The main advantage of trading using opposite Cultural Investment and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical'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 |
| HMTNew Technical vs. Guangxi Wuzhou Communications | HMTNew Technical vs. Lander Sports Development | HMTNew Technical vs. Jinhui Liquor Co | HMTNew Technical vs. Guangdong Shenglu Telecommunication |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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