Correlation Between Dongxing Sec and Cultural Investment
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By analyzing existing cross correlation between Dongxing Sec Co and Cultural Investment Holdings, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Cultural Investment.
Diversification Opportunities for Dongxing Sec and Cultural Investment
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and Cultural is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Dongxing Sec 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 Dongxing Sec Co 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 Dongxing Sec i.e., Dongxing Sec and Cultural Investment go up and down completely randomly.
Pair Corralation between Dongxing Sec and Cultural Investment
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 1.2 times more return on investment than Cultural Investment. However, Dongxing Sec is 1.2 times more volatile than Cultural Investment Holdings. It trades about -0.03 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.1 per unit of risk. If you would invest 1,121 in Dongxing Sec Co on October 23, 2024 and sell it today you would lose (27.00) from holding Dongxing Sec Co or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dongxing Sec Co vs. Cultural Investment Holdings
Performance |
| Timeline |
| Dongxing Sec |
| Cultural Investment |
Dongxing Sec and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Cultural Investment
The main advantage of trading using opposite Dongxing Sec and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Jilin Chemical Fibre | Dongxing Sec vs. Dymatic Chemicals | Dongxing Sec vs. Guizhou Chanhen Chemical | Dongxing Sec vs. GreenTech Environmental Co |
| Cultural Investment vs. Nexchip Semiconductor Corp | Cultural Investment vs. Shannon Semiconductor Technology | Cultural Investment vs. Xinjiang Baodi Mining | Cultural Investment vs. Shengda Mining 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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