Correlation Between Cultural Investment and Henan Shenhuo
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By analyzing existing cross correlation between Cultural Investment Holdings and Henan Shenhuo Coal, you can compare the effects of market volatilities on Cultural Investment and Henan Shenhuo 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 Cultural Investment with a short position of Henan Shenhuo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Henan Shenhuo.
Diversification Opportunities for Cultural Investment and Henan Shenhuo
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cultural and Henan is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Henan Shenhuo Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shenhuo Coal and Cultural Investment 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 Cultural Investment Holdings are associated (or correlated) with Henan Shenhuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shenhuo Coal has no effect on the direction of Cultural Investment i.e., Cultural Investment and Henan Shenhuo go up and down completely randomly.
Pair Corralation between Cultural Investment and Henan Shenhuo
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.08 times more return on investment than Henan Shenhuo. However, Cultural Investment is 1.08 times more volatile than Henan Shenhuo Coal. It trades about 0.07 of its potential returns per unit of risk. Henan Shenhuo Coal is currently generating about 0.02 per unit of risk. If you would invest 195.00 in Cultural Investment Holdings on September 25, 2024 and sell it today you would earn a total of 24.00 from holding Cultural Investment Holdings or generate 12.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cultural Investment Holdings vs. Henan Shenhuo Coal
Performance |
Timeline |
Cultural Investment |
Henan Shenhuo Coal |
Cultural Investment and Henan Shenhuo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cultural Investment and Henan Shenhuo
The main advantage of trading using opposite Cultural Investment and Henan Shenhuo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Henan Shenhuo 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 Henan Shenhuo will offset losses from the drop in Henan Shenhuo's long position.Cultural Investment vs. Universal Scientific Industrial | Cultural Investment vs. Gem Year Industrial Co | Cultural Investment vs. Industrial Bank Co | Cultural Investment vs. Xinjiang Baodi Mining |
Henan Shenhuo vs. Metro Investment Development | Henan Shenhuo vs. Zoje Resources Investment | Henan Shenhuo vs. Cultural Investment Holdings | Henan Shenhuo vs. Beijing Mainstreets Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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