Correlation Between Cultural Investment and Ningbo Tip
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By analyzing existing cross correlation between Cultural Investment Holdings and Ningbo Tip Rubber, you can compare the effects of market volatilities on Cultural Investment and Ningbo Tip 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 Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Ningbo Tip.
Diversification Opportunities for Cultural Investment and Ningbo Tip
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Ningbo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber 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 Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of Cultural Investment i.e., Cultural Investment and Ningbo Tip go up and down completely randomly.
Pair Corralation between Cultural Investment and Ningbo Tip
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to under-perform the Ningbo Tip. In addition to that, Cultural Investment is 1.29 times more volatile than Ningbo Tip Rubber. It trades about -0.01 of its total potential returns per unit of risk. Ningbo Tip Rubber is currently generating about -0.01 per unit of volatility. If you would invest 1,696 in Ningbo Tip Rubber on September 5, 2024 and sell it today you would lose (308.00) from holding Ningbo Tip Rubber or give up 18.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Cultural Investment |
| Ningbo Tip Rubber |
Cultural Investment and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Ningbo Tip
The main advantage of trading using opposite Cultural Investment and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Ningbo Tip 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 Tip will offset losses from the drop in Ningbo Tip's long position.| Cultural Investment vs. Anhui Gujing Distillery | Cultural Investment vs. Shandong Sinoglory Health | Cultural Investment vs. Shanghai Jinfeng Wine | Cultural Investment vs. Everjoy Health Group |
| Ningbo Tip vs. Cultural Investment Holdings | Ningbo Tip vs. Gome Telecom Equipment | Ningbo Tip vs. Bus Online Co | Ningbo Tip 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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