Correlation Between Cultural Investment and Jiangsu GDK
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By analyzing existing cross correlation between Cultural Investment Holdings and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Cultural Investment and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Jiangsu GDK.
Diversification Opportunities for Cultural Investment and Jiangsu GDK
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Jiangsu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Cultural Investment i.e., Cultural Investment and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Cultural Investment and Jiangsu GDK
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.66 times more return on investment than Jiangsu GDK. However, Cultural Investment Holdings is 1.51 times less risky than Jiangsu GDK. It trades about 0.09 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about 0.05 per unit of risk. If you would invest 168.00 in Cultural Investment Holdings on September 3, 2024 and sell it today you would earn a total of 52.00 from holding Cultural Investment Holdings or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Cultural Investment |
| Jiangsu GDK Biotechnology |
Cultural Investment and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Jiangsu GDK
The main advantage of trading using opposite Cultural Investment and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Cultural Investment vs. Anji Foodstuff Co | Cultural Investment vs. Shenzhen Clou Electronics | Cultural Investment vs. Muyuan Foodstuff Co | Cultural Investment vs. Leyard Optoelectronic |
| Jiangsu GDK vs. Chengdu Kanghua Biological | Jiangsu GDK vs. Beijing Wantai Biological | Jiangsu GDK vs. Suzhou Novoprotein Scientific | Jiangsu GDK vs. Aluminum Corp of |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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