Correlation Between Xiwang Special and Electronic Arts

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Xiwang Special and Electronic Arts 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 Xiwang Special and Electronic Arts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiwang Special Steel and Electronic Arts, you can compare the effects of market volatilities on Xiwang Special and Electronic Arts 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 Xiwang Special with a short position of Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Special and Electronic Arts.

Diversification Opportunities for Xiwang Special and Electronic Arts

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Xiwang and Electronic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Special Steel and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts and Xiwang Special 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 Xiwang Special Steel are associated (or correlated) with Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of Xiwang Special i.e., Xiwang Special and Electronic Arts go up and down completely randomly.

Pair Corralation between Xiwang Special and Electronic Arts

Assuming the 90 days horizon Xiwang Special Steel is expected to generate 71.84 times more return on investment than Electronic Arts. However, Xiwang Special is 71.84 times more volatile than Electronic Arts. It trades about 0.09 of its potential returns per unit of risk. Electronic Arts is currently generating about 0.03 per unit of risk. If you would invest  0.97  in Xiwang Special Steel on October 16, 2024 and sell it today you would lose (0.96) from holding Xiwang Special Steel or give up 98.97% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy90.62%
ValuesDaily Returns

Xiwang Special Steel  vs.  Electronic Arts

 Performance 
       Timeline  
Xiwang Special Steel 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Xiwang Special Steel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Xiwang Special is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Electronic Arts 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Electronic Arts are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Electronic Arts is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Xiwang Special and Electronic Arts Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Xiwang Special and Electronic Arts

The main advantage of trading using opposite Xiwang Special and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Special position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.
The idea behind Xiwang Special Steel and Electronic Arts pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity