Correlation Between Wasu Media and Shanghai Xinhua
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By analyzing existing cross correlation between Wasu Media Holding and Shanghai Xinhua Media, you can compare the effects of market volatilities on Wasu Media and Shanghai Xinhua 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 Wasu Media with a short position of Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasu Media and Shanghai Xinhua.
Diversification Opportunities for Wasu Media and Shanghai Xinhua
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wasu and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Wasu Media Holding and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media and Wasu Media 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 Wasu Media Holding are associated (or correlated) with Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Wasu Media i.e., Wasu Media and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Wasu Media and Shanghai Xinhua
Assuming the 90 days trading horizon Wasu Media Holding is expected to generate 0.6 times more return on investment than Shanghai Xinhua. However, Wasu Media Holding is 1.68 times less risky than Shanghai Xinhua. It trades about -0.18 of its potential returns per unit of risk. Shanghai Xinhua Media is currently generating about -0.23 per unit of risk. If you would invest 750.00 in Wasu Media Holding on October 23, 2024 and sell it today you would lose (49.00) from holding Wasu Media Holding or give up 6.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasu Media Holding vs. Shanghai Xinhua Media
Performance |
| Timeline |
| Wasu Media Holding |
| Shanghai Xinhua Media |
Wasu Media and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasu Media and Shanghai Xinhua
The main advantage of trading using opposite Wasu Media and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasu Media position performs unexpectedly, Shanghai Xinhua 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 Shanghai Xinhua will offset losses from the drop in Shanghai Xinhua's long position.| Wasu Media vs. Agricultural Bank of | Wasu Media vs. Industrial and Commercial | Wasu Media vs. Bank of China | Wasu Media vs. China Construction Bank |
| Shanghai Xinhua vs. Ping An Insurance | Shanghai Xinhua vs. China National Software | Shanghai Xinhua vs. Suzhou Mingzhi Technology | Shanghai Xinhua vs. Jiangsu Hoperun Software |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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