Correlation Between Bank of Nanjing and Cultural Investment
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By analyzing existing cross correlation between Bank of Nanjing and Cultural Investment Holdings, you can compare the effects of market volatilities on Bank of Nanjing 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 Bank of Nanjing with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Nanjing and Cultural Investment.
Diversification Opportunities for Bank of Nanjing and Cultural Investment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Cultural is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Nanjing and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Bank of Nanjing 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 Bank of Nanjing 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 Bank of Nanjing i.e., Bank of Nanjing and Cultural Investment go up and down completely randomly.
Pair Corralation between Bank of Nanjing and Cultural Investment
Assuming the 90 days trading horizon Bank of Nanjing is expected to generate 9.65 times less return on investment than Cultural Investment. But when comparing it to its historical volatility, Bank of Nanjing is 3.46 times less risky than Cultural Investment. It trades about 0.04 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Cultural Investment Holdings on September 22, 2024 and sell it today you would earn a total of 28.00 from holding Cultural Investment Holdings or generate 14.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 97.78% |
Values | Daily Returns |
Bank of Nanjing vs. Cultural Investment Holdings
Performance |
Timeline |
Bank of Nanjing |
Cultural Investment |
Bank of Nanjing and Cultural Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Nanjing and Cultural Investment
The main advantage of trading using opposite Bank of Nanjing and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Nanjing 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.Bank of Nanjing vs. Cultural Investment Holdings | Bank of Nanjing vs. Gome Telecom Equipment | Bank of Nanjing vs. Holitech Technology Co | Bank of Nanjing vs. Zotye Automobile Co |
Cultural Investment vs. Zoje Resources Investment | Cultural Investment vs. Tieling Newcity Investment | Cultural Investment vs. HaiXin Foods Co | Cultural Investment vs. Hunan Investment Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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