Correlation Between ZhongAn Online and Xinhua Winshare
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and Xinhua Winshare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ZhongAn Online and Xinhua Winshare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and Xinhua Winshare Publishing, you can compare the effects of market volatilities on ZhongAn Online 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 ZhongAn Online with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and Xinhua Winshare.
Diversification Opportunities for ZhongAn Online and Xinhua Winshare
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZhongAn and Xinhua is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P 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 ZhongAn Online 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 ZhongAn Online P 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 ZhongAn Online i.e., ZhongAn Online and Xinhua Winshare go up and down completely randomly.
Pair Corralation between ZhongAn Online and Xinhua Winshare
Assuming the 90 days trading horizon ZhongAn Online P is expected to generate 0.88 times more return on investment than Xinhua Winshare. However, ZhongAn Online P is 1.13 times less risky than Xinhua Winshare. It trades about 0.14 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 137.00 in ZhongAn Online P on November 3, 2024 and sell it today you would earn a total of 8.00 from holding ZhongAn Online P or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ZhongAn Online P vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| ZhongAn Online P |
| Xinhua Winshare Publ |
ZhongAn Online and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and Xinhua Winshare
The main advantage of trading using opposite ZhongAn Online and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online 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.| ZhongAn Online vs. SENECA FOODS A | ZhongAn Online vs. Casio Computer CoLtd | ZhongAn Online vs. GMO Internet | ZhongAn Online vs. Verizon Communications |
| Xinhua Winshare vs. SBI Insurance Group | Xinhua Winshare vs. REVO INSURANCE SPA | Xinhua Winshare vs. GOLD ROAD RES | Xinhua Winshare vs. Vienna Insurance 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |