Correlation Between Bank of XiAn Co Ltd and Cultural Investment
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By analyzing existing cross correlation between Bank of XiAn and Cultural Investment Holdings, you can compare the effects of market volatilities on Bank of XiAn Co Ltd and Cultural Investment 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 Bank of XiAn Co Ltd with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of XiAn Co Ltd and Cultural Investment.
Diversification Opportunities for Bank of XiAn Co Ltd and Cultural Investment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Cultural is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bank of XiAn and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Bank of XiAn Co Ltd 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 Bank of XiAn are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Bank of XiAn Co Ltd i.e., Bank of XiAn Co Ltd and Cultural Investment go up and down completely randomly.
Pair Corralation between Bank of XiAn Co Ltd and Cultural Investment
Assuming the 90 days trading horizon Bank of XiAn Co Ltd is expected to generate 2.92 times less return on investment than Cultural Investment. But when comparing it to its historical volatility, Bank of XiAn is 2.3 times less risky than Cultural Investment. It trades about 0.01 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Cultural Investment Holdings on December 4, 2024 and sell it today you would lose (19.00) from holding Cultural Investment Holdings or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bank of XiAn vs. Cultural Investment Holdings
Performance |
| Timeline |
| Bank of XiAn Co Ltd |
| Cultural Investment |
Bank of XiAn Co Ltd and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of XiAn Co Ltd and Cultural Investment
The main advantage of trading using opposite Bank of XiAn Co Ltd and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of XiAn Co Ltd position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Bank of XiAn Co Ltd vs. Shenzhen Urban Transport | Bank of XiAn Co Ltd vs. Anhui Transport Consulting | Bank of XiAn Co Ltd vs. Western Metal Materials | Bank of XiAn Co Ltd vs. China Sports Industry |
| Cultural Investment vs. Sanbo Hospital Management | Cultural Investment vs. Beijing Sanyuan Foods | Cultural Investment vs. Dezhan HealthCare Co | Cultural Investment vs. Zhongyin Babi Food |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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