Correlation Between Shandong Sinoglory and Cultural Investment
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By analyzing existing cross correlation between Shandong Sinoglory Health and Cultural Investment Holdings, you can compare the effects of market volatilities on Shandong Sinoglory 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 Shandong Sinoglory with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Cultural Investment.
Diversification Opportunities for Shandong Sinoglory and Cultural Investment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Cultural is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Shandong Sinoglory 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 Shandong Sinoglory Health 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 Shandong Sinoglory i.e., Shandong Sinoglory and Cultural Investment go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Cultural Investment
Assuming the 90 days trading horizon Shandong Sinoglory Health is expected to generate 0.55 times more return on investment than Cultural Investment. However, Shandong Sinoglory Health is 1.82 times less risky than Cultural Investment. It trades about 0.19 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.03 per unit of risk. If you would invest 1,241 in Shandong Sinoglory Health on September 13, 2024 and sell it today you would earn a total of 89.00 from holding Shandong Sinoglory Health or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Cultural Investment Holdings
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Cultural Investment |
Shandong Sinoglory and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Cultural Investment
The main advantage of trading using opposite Shandong Sinoglory and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory 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.| Shandong Sinoglory vs. Nanjing Putian Telecommunications | Shandong Sinoglory vs. Tianjin Realty Development | Shandong Sinoglory vs. Kangyue Technology Co | Shandong Sinoglory vs. Shenzhen Hifuture Electric |
| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
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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