Correlation Between Cultural Investment and Leaguer Shenzhen
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By analyzing existing cross correlation between Cultural Investment Holdings and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Cultural Investment and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Leaguer Shenzhen.
Diversification Opportunities for Cultural Investment and Leaguer Shenzhen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cultural and Leaguer is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Cultural Investment i.e., Cultural Investment and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Cultural Investment and Leaguer Shenzhen
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.34 times more return on investment than Leaguer Shenzhen. However, Cultural Investment is 1.34 times more volatile than Leaguer Shenzhen MicroElectronics. It trades about 0.03 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about -0.03 per unit of risk. If you would invest 242.00 in Cultural Investment Holdings on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.83% 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. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Cultural Investment |
| Leaguer Shenzhen Mic |
Cultural Investment and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Leaguer Shenzhen
The main advantage of trading using opposite Cultural Investment and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen'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 |
| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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