Correlation Between Cultural Investment and Shenzhen Sunlord
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By analyzing existing cross correlation between Cultural Investment Holdings and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on Cultural Investment and Shenzhen Sunlord 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 Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Shenzhen Sunlord.
Diversification Opportunities for Cultural Investment and Shenzhen Sunlord
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele 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 Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of Cultural Investment i.e., Cultural Investment and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between Cultural Investment and Shenzhen Sunlord
Assuming the 90 days trading horizon Cultural Investment is expected to generate 1.36 times less return on investment than Shenzhen Sunlord. In addition to that, Cultural Investment is 1.79 times more volatile than Shenzhen Sunlord Electronics. It trades about 0.02 of its total potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.04 per unit of volatility. If you would invest 2,502 in Shenzhen Sunlord Electronics on September 24, 2024 and sell it today you would earn a total of 773.00 from holding Shenzhen Sunlord Electronics or generate 30.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Cultural Investment Holdings vs. Shenzhen Sunlord Electronics
Performance |
Timeline |
Cultural Investment |
Shenzhen Sunlord Ele |
Cultural Investment and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cultural Investment and Shenzhen Sunlord
The main advantage of trading using opposite Cultural Investment and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Shenzhen Sunlord 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 Shenzhen Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.Cultural Investment vs. Gome Telecom Equipment | Cultural Investment vs. Bus Online Co | Cultural Investment vs. Holitech Technology Co | Cultural Investment vs. Zotye Automobile Co |
Shenzhen Sunlord vs. Industrial and Commercial | Shenzhen Sunlord vs. China Construction Bank | Shenzhen Sunlord vs. Agricultural Bank of | Shenzhen Sunlord vs. Bank of China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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