Correlation Between Cultural Investment and Liaoning Chengda
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By analyzing existing cross correlation between Cultural Investment Holdings and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Cultural Investment and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Liaoning Chengda.
Diversification Opportunities for Cultural Investment and Liaoning Chengda
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Liaoning is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Cultural Investment i.e., Cultural Investment and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Cultural Investment and Liaoning Chengda
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 2.14 times more return on investment than Liaoning Chengda. However, Cultural Investment is 2.14 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.09 per unit of risk. If you would invest 230.00 in Cultural Investment Holdings on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.87% 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. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Cultural Investment |
| Liaoning Chengda Bio |
Cultural Investment and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Liaoning Chengda
The main advantage of trading using opposite Cultural Investment and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
| Liaoning Chengda vs. Cultural Investment Holdings | Liaoning Chengda vs. Gome Telecom Equipment | Liaoning Chengda vs. Holitech Technology Co | Liaoning Chengda vs. Zotye Automobile 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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