Correlation Between Cultural Investment and Fujian Oriental
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By analyzing existing cross correlation between Cultural Investment Holdings and Fujian Oriental Silver, you can compare the effects of market volatilities on Cultural Investment and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Fujian Oriental.
Diversification Opportunities for Cultural Investment and Fujian Oriental
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cultural and Fujian is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Cultural Investment i.e., Cultural Investment and Fujian Oriental go up and down completely randomly.
Pair Corralation between Cultural Investment and Fujian Oriental
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.99 times more return on investment than Fujian Oriental. However, Cultural Investment Holdings is 1.01 times less risky than Fujian Oriental. It trades about -0.01 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.13 per unit of risk. If you would invest 224.00 in Cultural Investment Holdings on September 25, 2024 and sell it today you would lose (5.00) from holding Cultural Investment Holdings or give up 2.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cultural Investment Holdings vs. Fujian Oriental Silver
Performance |
Timeline |
Cultural Investment |
Fujian Oriental Silver |
Cultural Investment and Fujian Oriental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cultural Investment and Fujian Oriental
The main advantage of trading using opposite Cultural Investment and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental'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 |
Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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