Correlation Between Hefei Metalforming and Cultural Investment
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By analyzing existing cross correlation between Hefei Metalforming Mach and Cultural Investment Holdings, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Cultural Investment.
Diversification Opportunities for Hefei Metalforming and Cultural Investment
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and Cultural is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Hefei Metalforming 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 Hefei Metalforming Mach 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 Hefei Metalforming i.e., Hefei Metalforming and Cultural Investment go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Cultural Investment
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.17 times more return on investment than Cultural Investment. However, Hefei Metalforming is 1.17 times more volatile than Cultural Investment Holdings. It trades about 0.12 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.02 per unit of risk. If you would invest 730.00 in Hefei Metalforming Mach on September 4, 2024 and sell it today you would earn a total of 67.00 from holding Hefei Metalforming Mach or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Cultural Investment Holdings
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Cultural Investment |
Hefei Metalforming and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Cultural Investment
The main advantage of trading using opposite Hefei Metalforming and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. Chengdu Kanghua Biological | Hefei Metalforming vs. Beijing Wantai Biological | Hefei Metalforming vs. Suzhou Novoprotein Scientific | Hefei Metalforming vs. Aluminum Corp of |
| Cultural Investment vs. China State Construction | Cultural Investment vs. Poly Real Estate | Cultural Investment vs. China Vanke Co | Cultural Investment vs. China Merchants Shekou |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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