Correlation Between Cultural Investment and Oppein Home
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By analyzing existing cross correlation between Cultural Investment Holdings and Oppein Home Group, you can compare the effects of market volatilities on Cultural Investment and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Oppein Home.
Diversification Opportunities for Cultural Investment and Oppein Home
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Oppein is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Cultural Investment i.e., Cultural Investment and Oppein Home go up and down completely randomly.
Pair Corralation between Cultural Investment and Oppein Home
Assuming the 90 days trading horizon Cultural Investment is expected to generate 2.18 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Cultural Investment Holdings is 1.27 times less risky than Oppein Home. It trades about 0.14 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,335 in Oppein Home Group on August 31, 2024 and sell it today you would earn a total of 2,725 from holding Oppein Home Group or generate 62.86% 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. Oppein Home Group
Performance |
| Timeline |
| Cultural Investment |
| Oppein Home Group |
Cultural Investment and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Oppein Home
The main advantage of trading using opposite Cultural Investment and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Cultural Investment vs. BYD Co Ltd | Cultural Investment vs. China Mobile Limited | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Industrial and Commercial |
| Oppein Home vs. China State Construction | Oppein Home vs. China Merchants Shekou | Oppein Home vs. Huafa Industrial Co | Oppein Home vs. China International Capital |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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