Correlation Between Suzhou Weizhixiang and Cultural Investment
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Cultural Investment Holdings, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Cultural Investment.
Diversification Opportunities for Suzhou Weizhixiang and Cultural Investment
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Cultural is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Cultural Investment go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Cultural Investment
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Weizhixiang Food is 1.65 times less risky than Cultural Investment. The stock trades about -0.04 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Cultural Investment Holdings on September 4, 2024 and sell it today you would lose (105.00) from holding Cultural Investment Holdings or give up 31.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Cultural Investment Holdings
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Cultural Investment |
Suzhou Weizhixiang and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Cultural Investment
The main advantage of trading using opposite Suzhou Weizhixiang and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Poly Real Estate | Suzhou Weizhixiang vs. China Vanke Co | Suzhou Weizhixiang vs. China Merchants Shekou | Suzhou Weizhixiang vs. Huafa Industrial Co |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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