Correlation Between Duzhe Publishing and Cultural Investment
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By analyzing existing cross correlation between Duzhe Publishing Media and Cultural Investment Holdings, you can compare the effects of market volatilities on Duzhe Publishing 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 Duzhe Publishing with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Cultural Investment.
Diversification Opportunities for Duzhe Publishing and Cultural Investment
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duzhe and Cultural is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Duzhe Publishing 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 Duzhe Publishing Media 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 Duzhe Publishing i.e., Duzhe Publishing and Cultural Investment go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Cultural Investment
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 0.81 times more return on investment than Cultural Investment. However, Duzhe Publishing Media is 1.24 times less risky than Cultural Investment. It trades about 0.03 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.01 per unit of risk. If you would invest 591.00 in Duzhe Publishing Media on September 24, 2024 and sell it today you would earn a total of 94.00 from holding Duzhe Publishing Media or generate 15.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.79% |
Values | Daily Returns |
Duzhe Publishing Media vs. Cultural Investment Holdings
Performance |
Timeline |
Duzhe Publishing Media |
Cultural Investment |
Duzhe Publishing and Cultural Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Duzhe Publishing and Cultural Investment
The main advantage of trading using opposite Duzhe Publishing and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing 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.Duzhe Publishing vs. Xilong Chemical Co | Duzhe Publishing vs. Shenzhen Noposion Agrochemicals | Duzhe Publishing vs. Success Electronics | Duzhe Publishing vs. Ningxia Younglight Chemicals |
Cultural Investment vs. Gome Telecom Equipment | Cultural Investment vs. Bus Online Co | Cultural Investment vs. Holitech Technology Co | Cultural Investment vs. Zotye Automobile 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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