Correlation Between Shandong Zhongji and Xinhua Winshare
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By analyzing existing cross correlation between Shandong Zhongji Electrical and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Shandong Zhongji 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 Shandong Zhongji with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Zhongji and Xinhua Winshare.
Diversification Opportunities for Shandong Zhongji and Xinhua Winshare
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Xinhua is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Zhongji Electrical 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 Shandong Zhongji 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 Shandong Zhongji Electrical 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 Shandong Zhongji i.e., Shandong Zhongji and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Shandong Zhongji and Xinhua Winshare
Assuming the 90 days trading horizon Shandong Zhongji Electrical is expected to generate 1.79 times more return on investment than Xinhua Winshare. However, Shandong Zhongji is 1.79 times more volatile than Xinhua Winshare Publishing. It trades about 0.11 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.04 per unit of risk. If you would invest 2,031 in Shandong Zhongji Electrical on September 2, 2024 and sell it today you would earn a total of 10,642 from holding Shandong Zhongji Electrical or generate 523.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Zhongji Electrical vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Shandong Zhongji Ele |
| Xinhua Winshare Publ |
Shandong Zhongji and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Zhongji and Xinhua Winshare
The main advantage of trading using opposite Shandong Zhongji and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Zhongji 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.| Shandong Zhongji vs. Xinhua Winshare Publishing | Shandong Zhongji vs. Offcn Education Technology | Shandong Zhongji vs. Shenzhen Kexin Communication | Shandong Zhongji vs. Railway Signal Communication |
| Xinhua Winshare vs. Hubei Huaqiang High Tech | Xinhua Winshare vs. Hainan Haiqi Transportation | Xinhua Winshare vs. Keli Sensing Technology | Xinhua Winshare vs. Zhongshan Broad Ocean Motor |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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