Correlation Between Inner Mongolia and Xinhua Winshare
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By analyzing existing cross correlation between Inner Mongolia Dazhong and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Inner Mongolia and Xinhua Winshare 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 Inner Mongolia with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Xinhua Winshare.
Diversification Opportunities for Inner Mongolia and Xinhua Winshare
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inner and Xinhua is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia Dazhong and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ and Inner Mongolia 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 Inner Mongolia Dazhong are associated (or correlated) with Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Inner Mongolia and Xinhua Winshare
Assuming the 90 days trading horizon Inner Mongolia Dazhong is expected to generate 0.82 times more return on investment than Xinhua Winshare. However, Inner Mongolia Dazhong is 1.23 times less risky than Xinhua Winshare. It trades about -0.25 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.22 per unit of risk. If you would invest 899.00 in Inner Mongolia Dazhong on October 23, 2024 and sell it today you would lose (59.00) from holding Inner Mongolia Dazhong or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Inner Mongolia Dazhong vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Inner Mongolia Dazhong |
| Xinhua Winshare Publ |
Inner Mongolia and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Xinhua Winshare
The main advantage of trading using opposite Inner Mongolia and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Inner Mongolia vs. Luolai Home Textile | Inner Mongolia vs. Xiwang Foodstuffs Co | Inner Mongolia vs. Xiamen Goldenhome Co | Inner Mongolia vs. Tonghua Grape Wine |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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